Here's what I'm seeing in Word 2007:
1. Native-format Word 2007 documents: "soft" page breaks are displayed in
Draft view regardless of settings; manual page breaks are displayed only
when nonprinting characters are displayed, and they are displayed as a short
dotted line with "Page Break" in the center.
2. Word 97-2003 format documents: both "soft" and manual page breaks are
displayed in Draft view regardless of setting, and the manual break is a
dotted line clear across the screen with "Page Break" in the center.
So, in Compatibility Mode, you should be seeing both kinds of page breaks
regardless of your view settings. I do recall, however, that there were a
lot of posts on this subject earlier, so I'm wondering if this is something
that was fixed by an update. Is your copy of Word/Office 2007 fully patched
up to date?
Note that if you want to see page breaks in Draft view in .docx documents
without displaying *all* nonprinting characters, you can choose to display
just spaces, as evidently the "Spaces" toggle also controls the page breaks.
--
Suzanne S. Barnhill
Microsoft MVP (Word)
Words into Type
Fairhope, Alabama USA
http://word.mvps.org