No to your first question, Yes to the second one.
Actually...I just checked the official definition of "backward compatibility" here:
According to this source, the fact that Captivate 7 CAN open files from previous versions such as Cp5x would seem to mean it is, by definition, "backward compatible".
However, the fact that other previous versions of Captivate cannot open or work with Captivate 7 files means that those earlier versions are not "forward compatible".
Either way, the real issue for most Captivate developers that use different versions is that once you open a file from an earlier version of Cp in a later version of Cp and then SAVE that file, it will no longer be editible in the earlier version from then on.
So if you DO open a Cp5x or Cp6x project file (CPTX format) make sure you do a SAVE AS and then change the file name to something different, or else take a backup copy of your CPTX first, just in case anyone needs to keep editing it with the older version.
No version of Cp so far allows you to use SAVE AS to create a file that is compatible with earlier versions. Upgrading Captivate project files to newer versions is strictly a one-way street with no turning back.
Ok, but just so I am clear. You are saying that I can open Captivate 5.5 files in Captivate 7 but not the other way around?
That's exactly what Lilybiri meant by her much briefer reply.