Appleworks isn't a universal binary and won't be updated to one. My belief is that when MS pulls Office from the Mac in about 4.5 years Apple will preload all new Macs with iWork. But that's just my guess.
Pages will open Appleworks documents with all formatting preseverd as long as they were saved in V6 of Appleworks. If they weren't it may lose formatting or not open at all.
Wait a few weeks.... NeoOffice 2.0 will be available for Intel Macs soon. It's basically OpenOffice that runs on Macs with native Aqua. I have NeoOffice 2.0 on my PowerPC iMac at home, I love it. Far better than AppleWorks.