I was wrong, writely does support hyperlinks and spell checking (as demonstrated by this posting), and they responded to my feedback very quickly.  So it really is a very nice tool for writing blog posts.  My experience as a very small sample usability test indicates perhaps that the UI design and help text should be tweaked a little to make the available features more obvious.

It so happens I am co-writing a paper with someone outside my company right now, so I think I will test to see if collaborative writing works.  However he is on a Mac, so perhaps he will run into the Safari problem.

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