Because you can only have 1 instance of Office Outlook installed. Since OL 2003 was already installed then OL 2007 would not install. If you want OL 2007 then you need to remove OL 2003 and do not forget to save your pst files before doing it.
Uninstalling one version of office and installing another should NOT affect
any data. However, as you say, it is a good plan to do a backup anyway....
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