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Right now I use OpenOffice (http://www.openoffice.org/) exclusively for my everyday office needs. The most recent versions work great with documents created by, umm, that other Office suite B-). People I correspond with don't really know that I'm not using, umm, the Other Office Software.
Another good office project is KOffice (http://www.koffice.org/), part of the KDE project (http://www.kde.org/). KOffice is somewhat more comprehensive than OpenOffice, but I've found it doesn't interoperate so well with other productivity apps.
Another program is AbiWord (http://www.abisource.com). I have mixed feelings about it, but some people really like it.
Anyways, I guess my main point is that Office suite licenses are probably one of the biggest computer-related costs for small businesses. It makes sense to move to inexpensive Open Source alternatives.