In the now-shipping Office v.X, saving documents with long filenames is not yet supported. You can open a long filename document, and (just as in OS 9), Office will display the name truncated. Upon saving, the long filename is retained.
If you try to save a new document with a long filename, however, you'll be told that the "filename is too long" and must not exceed 31 characters. Dan C., a member of the Mac Business Unit at Microsoft, posted the reason to Omni's OS X Talk mailing list:
Word can open and edit files with >= 32 characters, but will show the truncated file name in title bar. Also, when saving a new file, the name is limited to 31 characters. Supporting longer file names requires rewriting a lot of file handling code in Word and the Office shared code. There's a lot of code there! We are working on adding this support in the future.So for now, you'll have to create longer filenames in the Finder when using Office v.X.
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