Collaborative writing can’t get any easier than at plotbot.com.
Plotbot is web-based screenwriting software. You can write your script with as many or as few people as you want—here’s nothing to install, it’s free, and it’s easy to use!

You could create an account in one single step and then you can add projects, invite your team mates or make it public so that anyone could contribute. It adopts an approach similar to “wikis” i.e. each element is editable by any member of a project. You can also comment on, delete or restore any element.
Through the buzzwordalicious magic of AJAX, you can quickly and easily write your screenplay from almost any browser. You just click to edit any element and push submit to store it—no cumbersome page reloads!
They claims that even the administrators can’t view the private projects
you are working on. They back up your data every day to ensure that you don’t lose your work. At any time, you can download your screenplay
as an XML or RTF (Rich Text Format) document.
The people behind this, are two classmates. One of them is a Project Manager of an University’s web services team. And the other one is a hardcore coder who “frequently finds himself accidentally terminating sentences with semi-colons.”
(I loved it !!).
You can know more about plotbot here.
Basically, it is intended to be used for writing scripts online, but I’m sure that new nifty uses will be found out !! When Twitter was launched, anyone thought that it will transform into a micro-blogging tool and tool for a product laucnch etc ?
Have you got any ideas to use PlotBot in a more innovative way? Share them !!
Update: Two other similar services have been reported by Jeff: Scripped & Zhura
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Scripped (http://www.scripped.com) and Zhura (http://www.zhura.com) have really surprassed Plotbot in this space…. Plotbot is really clunky.
WOW!
Thanks for those updates.
Added to the post.