Microsoft is going to start online office service soon. You can store files directly on the web. 250MB storage is offered which can store 1000 + office documents. You can view the files online, but you can’t edit the files. You may show your documents to your friends by sending an invite and receive their comments.
This service is just an online storage for Office documents.
Office Live workspace is not quite LIVE yet. you may register for the service Here.