Can I open Cubase 7 files with Cubase Elements 7.06?

That’s not entirely accurate. What will happen if I save a project in Cubase (containing 58 audio tracks), re-save it in Cubase Elements (which is limited to 48 tracks) and then open it again in Cubase?

Will the 10 “extra” audio tracks (and their settings) that CBE can’t handle still be there?
Are settings for features that are lacking in CBE (Control Room, TrackVersions, VariAudio, etc.) be retained?
Will VST/VSTi plugins (and there settings) that are absent on the second computer be retained?

I believe the answer to these questions are yes, when it comes to ProTools. I’m sure Avid sells quite a lot of copies if the LE (or whatever they’re called these days) vesin, as give-aways to collaborators.

It’s very interesting to learn how Cubase handles these issues. I could very well consider buying give-away copies of CBE to people I collaborate with. Giving away full licenses is another kettle of fish entirely. Forget it.