Writely.com is a free web word processor- wildly popular at del.icio.us and other places right now. Excellent resource for writers!

Writely is a web word processor that provides simple and secure document collaboration and publishing on the web using only the browser.
1. First, you create a document:
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Either by typing it in, or by uploading a Word/OpenOffice document, html, text or image file.
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Use our editor to format the text, add tables, images, etc.
2. Next, you share it with others:
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Enter people’s e-mail addresses to grant them access to the document.
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Send them a message from Writely to tell them about it.
3. Then, you can edit it together online:
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If another person starts editing the same document, a small notice will appear.
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Your changes will be automatically sync’d with theirs every few seconds.

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