No and Yes. I just tested this and what happens is that initially the file
opens in 2003 just fine and even looks good, but as soon as a cell is changed
that affects the cell with the =IFERROR() in it, that cell changes to a
#NAME! error display.
You'll see the formula entered this way in Excel 2003:
=_xlfn.IFERROR(A1/B1,"Cannot divide by zero")
note the _xlfn. in front of the function, indicating it's an Excel 2007
unique feature.
Now, you can "work around" this by rewriting it over in 2007 as
=IF(ISERROR(_xlfn.IFERROR(A1/B1,"Cannot divide by zero")),"EXCEL 2007
FEATURE UNAVAILABLE",_xlfn.IFERROR(A1/B1,"Cannot divide by zero"))
Which is a whole heck of a lot of work to deal with mixed-version users,
when you could have probably written the thing using one of the
2003-compatible error traps. For my example,
=IF(ISERROR(A1/B1,"Cannot Divide By Zero",A1/B1))
would work in all versions of Excel.
In this case