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Yes they are compatible! OpenOffice.org reads Microsoft office files fine, including the older office 2003 formats, and the newer xml based (2007+) ones. There maybe a few odd formatting things you need to tweek if you save from openoffice.org to Microsoft office, but generally it works fairly well. If you want the best compatibility, then try go-oo, a fork of openoffice that has better compatibility, even with stuff like Microsoft VBA macros. So yes, it works fine. And of course, openoffice always works better on Linux!

Also, don't forget when saving to change 'odf' to Microsoft office. But you can change the default save format to msoffice if your using it frequently

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