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Good stuff!  Be sure to watch the YouTube video.  There is a demo of how a Google Docs and MSWord collaborative document gets synchronized.  Notice the layout mismatch.  They do however seem to understand the problems of the advanced formatting common to compound documents and "in-process" workgroup documents. excerpt:  OffiSync is launching an all-new version of its Microsoft Office to Google Docs synchronization tool, a plugin that's a "must-have" for anyone still straddling the two worlds of office suites: that is, the desktop-based world of Microsoft software and the web-based world of Google Docs. In the updated version of OffiSync, set to arrive minutes from now, you'll be able to co-author documents in real-time between Microsoft Office and Google Docs, no matter what version of the Office software you use. There are a few other new features too, including improvements to search, added Google Sites support and the ability to store any file type, but it's the co-authoring feature that's today's biggest reveal.