The reason it packages in 2003 format is because of the Viewer. The 2007
Viewer is basically the 2003 Viewer + a compatibility pack to allow it to
open 2007-format (PPTX, PPSX) files. It won't run from a CD because of the
compatibility pack.
So in order to run from CD, you need the 2003 Viewer, and you need the 2007
file to be in 2003 format. That's really all the 2007 Package for CD is
doing -- "backsaving" the 2007 file to 2003 format so it can be viewed in
the 2003 viewer from CD. But at that point, you shouldn't be editing, so it
should be okay for distribution.
If you just need to roll everything to a CD without changing the format,
then use Package for CD but opt not to include the Viewer. That should leave
it as 2007 format. Of course, it won't *run* from the CD...
Be aware that you can opt to embed the fonts, but that's not the same as
having them installed on the other computer if you're doing this for editing
purposes. I guess it all depends on what you mean by "work" on the other
computer.