I just read the Microsoft article, and I think the ZDnet article got it wrong.
It appears to me that the ZD author saw the entire list of "Word File Versions", and ASSUMED that they were ALL being blocked.
THIS IS NOT TRUE, at least as I read the Microsoft article.
What it looks like to me is that they have blocked files created with versions OLDER THAN 97. The table of -all- file type codes is near the bottom of the Microsoft page. It is NOT a list of blocked versions!
Read this and see what you think:
I just finished looking at the Microsoft page... and it may be true... or it may be false. The page is written in a very turgid and unclear manner. I suggest anyone worried about it try and read the page themselves and see what they take from it.
http://support.microsoft.com/kb/938810