You're confusing two separate concepts. MDE files are compiled versions of MDB files. They have all source code removed, and they're a good way to protect your code from tampering or piracy. Access Runtime is a separate version of Access that allows users to open Access databases (MDB, MDE, etc.) without needing to buy a full copy of Access. Prior to the 2007 version, developers had to buy a separate license to be able to distribute the Runtime version of Access. As of Access 2007, Microsoft is providing the Runtime version for free.
Your Access 2002 MDE should work with Access 2007 Runtime, and it's free. Note: MDB files will also work. Here's a link to download the Access 2007 Runtime:
Yes, it should work so long as everyone has Windows XP or higher. Access 2007 has a slightly different user interface than earlier versions of Access. It has a graphical ribbon at the top of the screen instead of the old menu and toolbar structure. It should work, though.
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