If you want to create a policy feature that provides functionality within 2007 Microsoft Office system client applications, you must create the custom code that enforces the policy within the applications and also deploy that code onto the computers running the applications. The policy XML is demoted and stored in client documents, such as 2007 Microsoft Office system documents, as read-only instructions for how to execute the policy. Office SharePoint Server 2007 does not handle the deployment of the code that enforces the policy within the 2007 Office system client application.