Google docs is okay but there is no better place than iEtherpad. They recently took over the public etherpad code when Etherpad was bought out by google (still awaiting what google is going to do with this marvellous code!).
On iEtherpad, you can see all the changes on a document and also invite users. All versions in a different color and there is a wonderful "timeslider" to see the development of the document. Amazing! Think of how cool it would have been to see how Stephen King wrote "Carrie"! Or Jeremy Harmer, The Practice of English Language Teaching!
See my example HERE. One cool trick to get your custom url for an etherpad -- just type in http://ietherpad.com/DOCUMENTNAME and then any and all can go and view it and contribute at that url. [note - Pirate Pad is also a similar alternative ]
See my other recommended writing websites HERE.
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