A pretty direct quote from MS that confirms Office 2003's "rip and replace" nature:

...Office 2003's breakthrough features -- its ability to let workers collaborate on intelligent work files -- work only by hooking into Microsoft's latest server products. Such high-end files can update themselves dynamically and work with data and content from other programs and computing systems.
"If you want to drive the new version of the car, you've got to buy the new chassis and the new engine," says Gytis Barzdukas, Microsoft Office product manager.
Except that IT doesn't usually work like that, because the old technology isn't exactly rusting out at the rate it used to.
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