Check out the Google Docs tutorial here.
Also, a great overview can be found here.
Google Docs are great for a number of reasons. Here are just a few:
- Docs can link to your Google Website and update the website instantly
- You can share you Docs with other users to collaborate with ease
- You can access your Docs from any computer that has internet
- You can upload older documents to Docs and work on them from anywhere
- You have 1GB of space to save any type of document
- You can create a web form and collect the data directly in your account
- A teacher can create, distribute, provide feedback on student assignments