Although I had heard of Google Docs and Spreadsheets before, I never really found a reason to jump in. Word and Excel were working just fine for me. Until I found myself writing website content that needs to be edited by 3 or 4 people. Ugh, considering our computers aren't top-of-the-line, file sharing and keeping track of versions was becoming a nightmare, especially since we had no CMS to speak of for our site content.
This week I decided to jump in and wow, what a difference. There is really no functional issue, if you use word for it's basic features. You can invite people to collaborate with you on your document or spreadsheet, publish it to the world wide web (bet you haven't heard that term used in awhile), and even chat about a document while you are editing it. Nice features if you tend to work in groups on writing or editing content. With a very shallow learning curve and great for basic applications, I highly recommend Google Docs.