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Try this

That is tru, it may save by default to rtf,
Try this
Open the rtf file as you are doing, now got up to file and choose "save as" and type in your title
Under where you type the file name, right...

Are you sure it is a 2007 rtf and not 2003 rtf?
What happens or message do you get when trying to opne the rtf file?

http://office.microsoft.com/en-us/word/HA100444751033.aspx