OpenOffice is more powerful than Microsoft Works. It is meant to be open source version and alternative version of Microsoft Office. I have OpenOffice 2.3 installed and OpenOffice Writer (equivalent to Word) is able to open Microsoft Word documents (amongst other file format).

For Grammar checker plug-in, have a look at the following:
LanguageTool
http://extensions.services.openoffice.org/project/languagetool
From the product page:
It can detect some grammar mistakes. It does not include spell checking.

LightProof
http://extensions.services.openoffice.org/project/lightproof
From the product page:
It is grammar checker extension and a framework for quick grammar checker development for every language supported by OpenOffice.org

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