did a quick search for this on here and found nothing, sorry if this is a repeat.
Thought this site looked super-fantastic.
http://ficly.com/
Per the site's description:
"Ficly is a place for playing with story-telling; a collaborative environment where anyone can pick up a narrative thread and weave a prequel or sequel.
You can start a story or jump into someone else's tale. The possibilities are endless, and in some cases, so are the stories."
Oh man, good times. I found the site because Phil Plait of Bad Astronomy net-fame posted about it (he contributed a story segment).
Thought it might interest others here.