If you purchased MS Office 97 at retail, it should run on XP. If it's an
OEM version (a version supplied with another computer) no.
As to your blanket question, there is no precise answer to that. Some will
and some won't and sometimes it varies from system to system. XP does
include a compatibility wizard but there are no guarantees and the older the
application, the greater the possibility of trouble, especially with games
and anything designed to run in DOS.
If you have an application that is system critical, something you need for
business or work, you might want to dual boot your system with XP if you
know the application currently runs on your current setup. That way you
won't lose access to it.
Also, you might want to run the compatibility wizard on your setup. It may
point out problem applications or hardware that need to be changed or
updated. There is a wizard on the XP CD but you should run it before
acquiring it. You can download the wizard known as the Upgrade Advisor from
the following site and note, it is about 50MB so if you have access to a
broadband connection you might want to download it when you have access to
it:
http://www.microsoft.com/windowsxp/pro/howtobuy/upgrading/advisor.asp
Dual booting can be accomplished during XP setup. While at the 98SE
desktop, place the XP CD in the drive so as to begin setup from 98, choose
new install (this is available even on the upgrade CD). At some point
during setup you will be asked where you wish to install, choose a partition
separate from the current 98SE partition. NOTE: this may require you to
create a new partition for XP prior to installing if your hard drive has one
single partition. This can be done with 3rd party software such as
Powerquest's Partition Magic,
www.powerquest.com.