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What is the best online storage for file sharing and collaboration?

I need to setup an online collaboration project. What is the best service I can use to have 5-12 people sharing documents and general files? What should I be looking for this type of service, considering I want to organise collaboration of information, while still restricting access to specific users?

Public Comments

1. Google Apps http://www.google.com/a/
2. You can use Google docs. Its free of cost and you can share your Word Files, Spread Sheets and others online and can restrict rights to view only or edit them to the users you want only. If you don't have a google Id, make a new one, and tell all the people you want to collaborate to have their own google IDs
3. this has a free trial that'll allow you to use service for a while http://yousendit.computereweb.com/