How well does iWork 06 read old iWork 05 files?

I am thinking about buying iWork 06. How well does it read your old iWork files? Any problems?
Thanks

There are some problems, although minor and solveable, and depending how you've been formatting your work in Pages 1.
Pages 2 will overwrite any leading or multiple mid-line spaces you may have used as a workaround - e.g., to produce a drop cap (or majuscule) in Pages 1. These have to be replaced with "non-breaking spaces," referred to in the onscreen help on "invisibles" - and listed with the keyboard shortcuts. The shortcut for the "non-breaking space" is Option / Space.
There are also slight variations in how Pages 2 treats pagination. This is particularly evident if you've used the "baseline adjustment" to produce "leading" i.e., to make adjacent columns or facing pages exactly the same depth. This can need small adjustment after importing, although there is little consistency about it. Some pages will vary; others not.
There is also a minor and infrequent bug in Pages 2's justification, which I have reported to Apple. Just once in a while, it will leave a space inside the right hand margin, instead of justifying all the way to it. With "invisibles" on it is easy to see if this has happened or you just have a double space.
In short there may be some reworking to do in some documents.
However it is not the case that importing from Pages 1 to Pages 2 is irretrievable. You can (1) slightly rename your document when saving in Pages 2 - so that the Pages 1 document is not overwritten, or (2) save a Pages 2 document as a Pages 1 document - in which case any new features of Pages 2 that have been used will be lost; but the rest of the document survive.
I would recommend using method (1) above until you are completely satisfied that your documents are successfully migrated; and only then consider removing Pages 1 from your system.
Regards.

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