Office and Works are two different office suites.
Works contains a word processor (not Word, though based on a cut down
version of Word I believe). Documents are saved, by default, in a format
which Word can't open. Works also contains a simple spreadsheet application
(which is incompatible with Excel) and a (very) simple database application
(which is incompatible with Access).
Office contains Word and Excel. Depending on the version it may also contain
one or more of PowerPoint, Outlook, Access, and Publisher. There are also
some other applications such as Visio, FrontPage and Project which belong to
the Office 'family'.
To complicate matters there is also a product called 'Works Suite'. This
contains rather a mixed bag of applications (e.g. Money, Encarta) as well as
basic office software. It also contains a full version of Word (the Office
word processor), but never the latest version. The most recent version of
Works Suite contains a full version of Word 2002 (whereas the most recent
version of Office contains Word 2003).
Clear as mud?
