Is MS Office 2008 compatible with Lion? I am running Lion on a MacBook Pro 13" running Office 2008. I have recently begun having trouble with Word. I will be typing along and suddenly get a beach ball for no obvious reason.

When the recovered document comes up the last hour's worth of work is missing. This has happened multiple times. I have even had recovered documents lose more the second time around. I have autosave set to every 10 minutes.

So the question: is MS Office 2008 compatible with Lion? Would I have more success if I upgraded to Office 2011?

Thanks!
Microsoft released support article that states that Office 2008 is compatible with some known issues.

If you lost your autosaved files try to look in in Trash for Recovered files (after Restart) and check if the Autosave directory is set right (and has the right permissions) in Word Preferences.