
Once created you can share your document with others with google accounts. Share to allow them to read or edit the work so a spreadsheet can quickly be a group spreadsheet. For example a group of kids working on a lab report for chemistry class with google docs the can each write their part on the same document and the others can see what they have done, and check it for mistakes if they want. All you need to invite someone into a collaboration is an email address it is quite amazing.
Now the next question I had was what about documents I already have is there anyway I can upload them and yes there is you click the upload button and get a browse button for your whole computer(below.)

You can upload word processed documents, spreadsheets and presentations and collaboration in the same way as a created google document it really is quite impressive.
Check it out: http://docs.google.com/
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