Yes. Vault Manufacturing 2010 is compatible with MS office 2003(Excel, Powerpoint and Word).
I am assuming that you were trying to connect to Vault ADMS 2010 server via Office add-in, if so, please make sure you are using Office add-in for Vault Manufacturing 2010 rather than any old versions, you can simply check this via Control Panel->Add or Remove Programs->click "Autodesk Vault Manufacturing 2010"->click Change/Remove button and see if "MS Office Add-In" option is checked in the "Add/Remove features" list.
If you are sure you are using Office add-in 2010 and still have the compatibility problem, could you please tell us the version number of ADMS server you are connecting to and attach the snapshot of incompatibility message?