Good answer, interchange, although it's worth noting that if you run CAS3 memory at CAS2, you are effectively overclocking it (ie. running it faster than spec.). Yes, as you said, it usually works but it's worth mentioning nonetheless.
It's also worth mentioning that running PC133 memory at CAS2 results in a 1-5% performance improvement over running it at CAS3 (the variation depends on application - applications that mostly run in the cache will see little to no improvement, applications that swap in and out of memory a lot will see more).