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This is probably the biggest new feature and you're likely to either love it or hate it. At my company, most people have grown to really appreciate the new ribbon interface for it's simplicity and logical layout of functions. It definitely takes time to get used to, but after a while, it’s hard to go back to Office 2003’s interface.
The ribbon interface adds a context sensitive ribbon where the old menu and toolbars used to be in previous Office versions. Instead of small square icons representing everything from justification to text coloring, Office 2007 breaks the tool bar into logical sections such as Clipboard, Font, Paragraph, Styles and Editing (Figure 1). This provides much more space and lays things out in a logical manner making it much easier to find the most commonly used functions.
Just above the tool area are the tabs. Tabs further break the functions down into logical high-level categories such as Home, Insert, Page Layout, Reference, etc. As an example, I always had trouble remembering how to change my page layout from Portrait to Landscape, but now, it’s under Page Layout, Orientation. I think the people who will have the hardest time learning the interface will be those power users who have been using Office products since the beginning. Users new to the Office suite should find the layout much more intuitive - allowing them to use little known features with incredible ease.