"Document Format is Read Only" in 10.6

I opened a script that was saved as an application in Script Editor in Snow Leopard and it warns:

Document Format is Read Only
This script application is in a format that is no longer supported. You will not be able to save your changes, but you will be able to Save As a new script application. Do you want to edit this file anyway?
[Cancel][Allow Editing]

If I create a new script application in Snow Leopard will users of 10.5 and 10.4 be able to run it?

From the Release Notes:

“Application” replaces “Application Bundle” from previous versions. (“Application” from previous versions is the single-file format that is no longer supported.)

Will the new Applications run in older versions of the OS?

Read it again.

Sorry, I thought the text in the box was a quoting of my question so I didn’t read it. My bad.