CS vs. CS3 vs. CS4 - compatability?

We are a small non-profit in Portland, Oregon and currently own copies of CS and CS3.  We need another work station with the Adobe Suite installed and are, therefore, considering purchasing CS4.  As we need to continue to use the existing installations of both CS and CS3 our question is around compatability (we can not afford to upgrade all computers to CS4....and CS4 is what is available through an Adobe discount program for non-profits).  Does CS4 provide backward compatability?  Are there any issues with CS4 being able to open/edit CS or CS3 files?  Other issues we should be concerned about?
Any help y'all can provide would be greatly appreciated.  Thanks!

Depends on the application. The big bottleneck is InDesign which can be saved back via INX but using this for roundtrips is not a good idea since the text engines are a bit different between versions.
Illy can be saved as CS3 and Photoshop should be okay as long as you stay away from new features.
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    Murray --- ICQ 71997575
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    (If you *MUST* email me, don't LAUGH when you do so!)
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    which are the computer that supports it ? i run xp
    why did the uninstaller do a mess up ?
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