Google released a product they call “Cloud Connect on Feb 24. Using a Microsoft Office Plug-in, it allows someone who works in Office and stores documents locally to also sync them to Google Docs. At the moment, it works on Windows computers (XP, Vista, Windows 7)
Google’s help page has this description: “Google Cloud Connect for Microsoft Office brings collaborative multi-person editing to the familiar Microsoft® Office experience. You can share, backup, and simultaneously edit Microsoft Word, PowerPoint®, and Excel® documents with coworkers.”
Google’s help page is here
in the bottom right or navigate to