MS Office or iWork?

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I'm getting a Macbook (first mac ever!) whenever the new ones are available, and I'm not sure if I should buy iWork or Office for Mac. I have Office 2007 on my current HP laptop, so I'm going to want to just transfer the files over to my Mac, perferably by USB device. Will they work on the iWork version (I think it's called Pages?)
Basically, which would you perfer. I know iWork is like $50 cheaper, but if it's difficult, I'd rather not deal with it. Thanks.
 
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