We’ve all heard about certain applications working and not working with Apple’s new Mac OS X Lion. Some are simply false rumors. Walt Mossberg addresses one such rumor over at AllThingsD.com. Does Microsoft Office work on the new Lion operating system?

According to Mr. Mossberg and his tests, it does in fact work…although some minor features won’t work right. He also says that Microsoft states Office 2011 and Office 2008 do in fact work though they haven’t updated it to take advantage of Lion’s new features. But if you’re still on Office 2004, you’re out of luck with Lion.

Let’s face it though, if you’re still using Microsoft Office (any version), maybe it’s time you gave Apple’s iWork a shot. If you’re a Mac user, you’ll probably think it’s better and more intuitive anyway. We certainly think so. Plus it’s been updated to take advantage of Lion’s new features. How ’bout you? Do you prefer Office or iWork?