Terminal is an OS X application that emulates the dumb terminal of a UNIX workstation.It is the defaut application for opening UNIX execuble files.
OS X uses the file extension (those three of more letters following the period near the end of a file name) to identify which application is used to open a file. If the file has no extension, the OS assumes the extension to be .exe, and that the file is an executable file—a UNIX application—and launches Terminal.
Prior to OS X, Mac operating systems used Creator and Type codes, recorded at the beginning of a file, to identify which application created the file, and what type of file it was. These codes (BOBO for AppleWorks, and CWWP for a word processor file) were not visible. No file extension was necessary, and none was appended to th filename.
The Windows file system, though, did use extensions to identify files and associate them with applications. A Microsoft Word file was a .doc file, Excel used .xls, etcetera. The Windows version of AppleWorks (then ClarisWorks) also applied an extension to its file names—.cwk—and that's the extension still used.
If your 'old AppleWorks files' do not include a file extension in their names, try adding one. Early versions of OS X included an applescript for this purpose, and you may find that script on your machine yet. Its name is Add to File Names, and a Spotlight search should bring it up.
Add the .cwt extension to the filenames of the 'old AppleWorks files, and you may find they correctly open in AppleWorks.
Regards,
Barry