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I'm playing around with NeoOffice. So far, it compares favorably to Word
Here at the office, where I'm forced to use MS Office, I've run into a client that uses OOo. We had no problem communicating in that direction, either.
I highly recommend OOo for those who prefer not to shell out $400.00 for a word processor. It just works, it's compatible with everything, and the file formats are transparent and open. It a superior product to everything else I've tried.