When you design a Web page using Microsoft Office Web Components, any user with a Microsoft Office XP license can interact with the components in the browser to the level of interactivity you provide. That is, a user with an appropriate license can make changes to data in a spreadsheet, change formatting, drag fields in a chart or PivotTable List, and so on, as long as you didn't protect these options at design time. Users with an Office XP license can also create, design, and modify components in a design environment such as Microsoft FrontPage or Microsoft Access.
Users who do not have Office XP licenses can view the components and the data in them, and can print the view of the components, but they cannot interact with the components or manipulate them in a design environment. This means that if you distribute a Web page that uses components, users who have Office XP licenses will have access to all functionality provided, but users without a license can only view the data and information you've provided.
Installing the Office Web Components
Microsoft Office Web Components are installed with Microsoft Office XP and Microsoft Office applications, or they can be installed separately from an installation point provided by the Web page designer.
When you distribute a Web page that uses components, users who do not have the components installed will be prompted to install the components, provided the Web page designer configures the components to do so. The Web page designer must also provide an installation point for the components and a pointer to that location on the component installation page. For more information, see the Microsoft Office XP Resource Kit.
Once the Office Web Components are installed, users who have access to an Office XP license will be able to interact with and make changes to the components. Users without licenses will be able to view and print the components and the data in them, but they cannot interact with or make changes to them.
Details on licensing and functionality
Office XP installed on computer Users have full functionality and interactivity with components, including run-time and design-time capabilities.
Office XP application installed on computer Users can interact with the component in design mode in that application only (not in the browser or in other applications).
Office XP site license (user doesn't have Office XP installed on computer, but user's organization has an enterprise or site license agreement) Users have full functionality and interactivity with components, including run-time and design-time capabilities. However, the Web page designer must provide a location from which components can be downloaded, and must reference the site license in a license package file (.lpk) that is associated with one or more Web pages. You use the License Package Authoring Tool to create an appropriate license file for pages. For more information, see MSDN Online.
No Office XP, Office XP applications, or site licenses Users can view and print the components in view-only mode, but they cannot interact with the components or use the design capabilities.