If you have a Data Validation list in a Worksheet that is not active when the Compatibility Checker runs, it will fail. The Compatibility Checker produces an error as follows;
Excel 97-2003
Significant loss of functionality
One or more cells in this workbook contain data validation rules which refer to values on other worksheets. These data validation rules will not be saved.
Significant loss of functionality
One or more cells in this workbook contain data validation rules which refer to values on other worksheets. These data validation rules will not be saved.