Can I have both Office 2003 and Office 2007 on the same PC?

I have a PC that came with Office 2003 pre-installed at C:\Program
Files\Microsoft Office.



I qualify for the Home User Pack and can either upgrade to, or install,
Office 2007.



I would like to keep both versions on the PC as some users won't like the
transition.



I presume I can create a new folder at C:\Program Files\Microsoft Office
2007, or C:\Program Files\Microsoft Office\2007 and install Office 2007
there such that I can have and use both versions on the same PC at the same
time.



However when I start the install process I get all sorts of dire warnings in
respect of Outlook.



If I have both Outlook 2003 and Outlook 2007 installed and operational on
the same PC are there any issues I should be aware of?



I would like to transfer my existing Outlook files (.pst and .ost) from
Outlook 2003 to Outlook 2007 - I am the only user of the PC that uses
Outlook. How would I go about this?



Are there any other issues I should be aware of?



TIA.



Chris.