We have a client who says Quark 8 does not allow you to save down to 7. I think otherwise, am I wrong?
"export Layouts as Projects"  then  "Version"

We are trying to get them to save down 8 to our version of 7       

yes, Q8 can save back to Q7.
As a matter of fact, you can save a Q9 down to Q4, but you have to do them one version at a time, (Q9 to Q8, Q8 to Q7, Q7 to Q6, etc). This of course means you have to have an active copy of each version of Quark to be able to do it.

Indesign is the same, back saving is an art form, to say the least.

Thanks David!

It's like Indesign it's under export instead of Save.   Tricksters!!