iWork has some major compatibility issues with Office 2007 though, fonts not showing up correctly, presentation slides having garbled texts/position changes. Happens a lot more often when using non-english alphabets, but when you need to work in an Office environment, don't skimp out and go with iWork, get actual Office... And yes, even Office for mac had some issues with regular office, think they sorted those out in 2008 though.
EDIT: And it is silly for a normal person to run Linux, OS/2, or a number of other oses together with windows. Nothing against someone who actually needs it for something and knows how to use it (like i use ubuntu on a usb key to access computers all the time, better than worrying about personal data theft, great for doing maintenance on computers too). But why should a layman EVER have to have two operating systems? The entire point of most people "upgrading" to macs is that they want to make their lives easier. Second OS just to run a few programs is not easy. (at least not as easy as just using windows, osx, or linux alone)
And how would a layman ever learn a new OS until they installed it? It's pretty arrogant to think people should live within a preconceived box basroil and very intolerant to other idea's to boot. Apple's OS X may not be perfect nor fit everyone's needs, but it is a viable solution for many people. Imahawki's statement was pretty single minded and left no room for debate.
Thanks guys for the answers.
I'm still debating on what to get... PC or Mac...
I don't want to start that debate here...
I just want to know the limitation on compatibility if I were to switch.
Debating two different methodologies requires... well, some debate. If you just want pure information w/o debate here are some links for you...
Switch to Mac
5 Reasons to Switch
A guide for switching to a Mac
Switching from Windows to Mac - One Year Later
Switching to a Mac For Dummies