PS 12 files not opening with layers intact in PS7

Any ideas why my multi-layered psd and tif files saved with PS12 64 bit are opening flattened in PS7?
There's been some inconsistency.
Initially all psd were flattened.
Some tif copies i made were not...but most were still flattened when opened with PS7.
Perhaps it is because i'm using the 64 bit version and my friend with PS7 is not.
Thanks for any help. 
My settings...

Just to "fill in the blanks" a bit...
When Maximize PSD and PSB File Compatibility is set, a flattened composite is saved in the PSD along with all the layer info.  That way, if an older application doesn't understand or can't deal with the content of the layers, it has the option of opening the flattened composite (opposed to just failing).  That's what's apparently happening in your case.
Now the comments of R_Kelly and Chris Cox will make more sense.
-Noel

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