Hi,
Currently, Microsoft Office Live Workspace cannot serve your purpose to the extent that you are expecting from it. Microsoft Office Live Workspace is a place where you will be able to store few Microsoft Office documents (like Word, Excel, and PowerPoint) and other things like PDF files and image files. You can preview the Microsoft Office documents online in the preview pane but to edit it, you need to open the document using Microsoft Office application installed at your local computer. After that again you will be able to save the updated version online.
You can share the documents which are stored within your Microsoft Office Live Workspace account with other users and assign them with Editors or Viewers right. However, you can still try to use Microsoft Office Live Workspace and share the experience with us. It is free service and you just require a Windows Live ID to sign up.
Click here to know more about Microsoft Office Live Workspace:
http://workspace.officelive.com/en-us/Home2