I'm going totally cloud Part 2, Documents
Google docs - Winner
I have been signed up and using Google Docs for awhile now in a small capacity. Google docs supports all files as basic storage. They also provide pretty robust editors for the common files, PowerPoint, docs, spreadsheets, forms, drawing, and table. Most of my documents are spreadsheets, docs and presentations. the other are pdfs. The editors with google are not as powerful as Microsoft Office but they are powerful for the 95% of tasks you ask of them. If you need a more powerful editor you can download your document, edit, then re upload.
When you get a gmail account you get a free 2gb storage with google docs. The added bonus is that any document you convert to a google doc format does not go against your total storage. I upload all of my document which is thousands and after converted I'm only using a scant 396mb. This provides plenty of storage for most of people's documents with a couple gigs for rare pdfs, zip files or other files you don't want to convert. When converting I found that most files don't present any problems, even converted from pdfs as well.
For doing the mass upload I simply selected upload folder and selected my documents folder on my computer. I also chose convert to google doc and convert pdfs. The folders I had created in my documents folder were conveniently translated to google collections. Collections is what google uses for folders and organizing. If your familiar with GMail labels it works the same way. Make sure you assign all of your documents to a collection or else it will be hard to manage after you have a few hundred documents in you repository. For commonly used documents I use the star feature that you can span across multiple labels. Kind of like a favorites folder. Likeyou would guess with google you can share these docs with certain permissions with other users across the net, all you need is an email address. I find this is awesome for tasks, party plans or shopping lists.
My only grips are that you cannot find all of the files that are currently shared. I wish I could search shared docs so I can make sure I'm updating my security. My other grip is that you can't search for documents that are not contained in a collection easily. You can, but you have to say that the document your looking for is NOT in every label. This is exactly how GMail works too, which is also a huge grip but that is a different article.
Some other alternatives to take a look are
ZOHO
Zoho is very feature rich and provides a huge swath of tools for all kinds of editing. It's free for personal use. The reason I did not go with it was that I use gmail and am not looking for a new mail program. Zoho offers a lot of tools which email is one. Because a lot links through your zoho account, having another email account was not an interest to me. Zoho only offers 1GB of free storage whereas Google docs offers 2GB
Feng office formally opengoo
Opengoo seems like a promising tool but at this time does not offer any free space. The cheapest plan is (for 20 projects, 5 GB, and $20/month).
Buzzword
Buzzword is adobe's answer to Google docs. The interface is easy to use and is flash based. Most of the services are all a cart and doesn't seem as well put together for simple document editing as google docs.
