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Yes, it can.
"Just 'out-of-the-box'? Or do I have to download and install something?"
You need to download and install something. It's an Office Add-in, and it's found here:
2007 Microsoft Office Add-in: Microsoft Save as PDF
This works in all of these products:
We also have an add-in for saving to XPS files:
2007 Microsoft Office Add-in: Microsoft Save as XPS
And if you want support for both PDF and XPS in one download:
2007 Microsoft Office Add-in: Microsoft Save as PDF or XPS
Cool. So... I know what a PDF is, but what the h*** is an XPS file?"
Watch your language, buddy. XPS stands for "XML Paper Specification". It can be thought of as a rendering of a document that is XML, but is printable. Many printers are supporting this XML specification directly. A good starting-point link for you is the "View and Generate XPS" page. (additional links to information on the right-side of that page)
"Wait.. doesn't Windows Vista have built-in XPS support?"
Indeed it does. if you are running 2007 Office on Windows Vista, you do not need the "Save as XPS" Add-In. You can basically "print" to the "XPS Document Writer" and create an XPS file that way.
It is a shame that this functionality wasn't extended to all the applications in the Office family, e.g. Project. I still need to have a third party product installed to produce PDF versions of my Gantt charts.