<< Wasnt there news that Sun dropped Linux support for Star Office? Hopefully thats after 6.0... >>
No, the recent announcement is that they will begin officially charging for StarOffice 6.0.
This isn't really a revelation or new strategy, because a retail packaged SO 5.2 has been on sale for a long time now. It's akin to what Sun does w/ Forte Community Edition (free download), and the commercial Forte line.
The only way businesses and government will ever adopt StarOffice is if it has adequate functionality, is a a better value than M$ Office, and actually includes paid support. Obviously, the free download wasn't fulfilling the last requirement.
The functionality is pretty much there, although SO 6.0 release is anticipated by many. The value proposition is there, but also a tougher nut to crack. Although there's no doubt Sun can sell SO for less than Office, an Office OEM license bundled w/ a PC is pretty cheap as well (about $75 cost to the consumer). Of course, M$ Office import filters are also crucial, but as Workin' said, it's about as good as it gets.
The good news is that Office is Microsoft's most profitable franchise (more so than Winblows), and so even if Sun doesn't make money on SO, they could severely crimp Microsoft's Office revenue if SO adoption occurs. Obviously, Microsoft won't be hurting w/ $38 billion in the bank, but any threat to their business is healthy competition.
Let's face it, full binary compatibility will never happen (Office is a de facto monopoly), but if businesses and organizations adopted SO, it would cease to be relevant once M$ Office is no longer the native data format.