Adobe has a new online editor which not surprisingly uses Flash to offer a rich editing environment. There are other on-line editors, such as Google Docs, but they all pretty much look like glorified text editors. Buzzword looks more like a traditional word processor. The functionality may not be different, but the attitude of your students and staff may be a lot better with with they will probably perceive as a more sophisticated application.
Here are some screen snapshots. Signing up is free.
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