According to the site Workspaces (WSS for Office Live users) is now not quite out of beta, but still has a lot to offer:

Anywhere Access

• Save 1000+ Microsoft Office documents in one place
• Access them from almost any computer with a Web browser
• No more flash drives or sending yourself documents via e-mail

• Learn more

Share with Others

• Invite people to your workspace
• You control who can view, comment, and edit your documents
• Stop manually merging versions from multiple people

• Learn more

Extend the Microsoft Office Experience

• Open and save files directly from Word, Excel, and PowerPoint
• Synchronize contact, task, and event lists with Outlook
• No need to learn a new program

• Learn more

In terms of what is actually new:

• Public availability of Office Live Workspace beta at http://workspace.officelive.com with immediate access and no waitlist (English language version only)
• The easy way to save Office documents to/from the web
• Organise documents and projects online and work on them from almost any computer (full Firefox support)
• Invite others to view, edit or comment on documents and workspaces
• Full document versioning and time-stamping
• View and comment on documents in the browser, even if Office is not installed
• Create simple Web notes and Web lists (export to Excel and/or synch with Outlook)
• Share screen and documents in real time through integration with Microsoft SharedView
• Brand new features, such as an activity panel, notifications, direct links and multifile upload

While this is all very nice, there is actually some excellent materials, including videos and more explaining much at Permanent Link to Microsoft Office Live Workspaces Goes Live and some commentary about Google vs Office Live here and from Tech Radar here which goes as far as to say:

Microsoft has launched its equivalent of Google Docs - but without the ability to edit documents. It’s left the actual editing of documents to Office itself and offers Office Live Workspace as a way for individuals and small businesses to share files on the web.

A nifty Office add-in can be downloaded that enables you to save and open your docs straight to and from the Workspace - a feature Google Docs doesn’t have. There’s also a multiple document upload tool.

We don’t know about you, but all these different web-based apps are slightly confusing. However, aside from the ability to edit (which is a loss), the saving of documents straight to the web is a major leap forward for Microsoft.

Office Live Workspace was among the first of the new wave of online services in Microsoft’s software plus services vision that Bill Gates has been so fond of speaking about.

I like the reviews and they have it right - this is about sharing information, not information creation!!

Anyway, go have a play

ttfn

David