Microsoft Office 2008 Mac debuts with some serious issues

The long-awaited PowerPC and Intel native revision of Microsoft Office 2008 for Mac is starting to reach users in the US, and early reports are coming in of a number of significant functionality and compatibility issues. These include:

Office 2008 is incompatible with Spaces in Leopard (Mac OS X 10.5). Files formatted with .docx (the new standard format for Word documents) cannot be dragged into new spaces, instead snapping back to the original space.
Word 2008 crashing. There have been a number of causes identified for this, including the Normal template file (located at ~/Library/Application Support/Microsoft/Office/User Templates/Normal.dotm) appearing to be corrupt in many cases, corrupt Microsoft preferences and corrupted Microsoft fonts resulting from upgrade installations.
Word 2008 crashing when attempting document window resize and after prolonged activity in Headers and Footers.
Entourage 2008 does not offer full support for Exchange services, including the ability to synchronize notes or tasks with Exchange servers, view multiple calendars side-by-side, and the ability to see receipts when a recipient opens an email.
Office 2008 package (installer) sets certain file ownership permissions incorrectly, so that the Administrator user (the initial set-up user ID 501) is not the owner, but the next sequential account user (ID 502) is, regardless of whether they exist or not.
• Some Office 2008 applications may exhibit some
significant font display issues, in which some letters are rendered incorrectly (eg: C rendered as A). There are also reports of a knock-on effect with other non-Microsoft applications that use the same Microsoft-installed fonts.
• Entourage 2008 is reported to be
ignoring Entourage 2004 Rules by some users.
• Office 2008
no longer supports VBA Macros at this time. Files containing macros can be opened, but the macros can't be run.
• Entourage 2008
does not support Exchange's native MAPI protocol.

There are a number of workarounds and fixes emerging to counter some of the installation-specific issues - and I would hope to see Microsoft issue an update to address them in the not-too-distant future. In the meantime, you need to be aware that upgrading to Office 2008 from previous versions of Office may cause you significant problems.

UPDATE: Microsoft has posted 'official lists' of known issues for Office 2008 components: Word - Excel - Entourage - PowerPoint

UPDATE: Office 2008 is scheduled to ship in Australia on 31st January. There is a free ( + $27.00 postage & handling) upgrade available for purchasers of Office 2004 between 26th September 2007 and 29th February 2008. Full details and redemption form are to be found here.