Similar to Google docs in that many people can edit real time. I know there will be a server side component required. PHP-based would be preferred.
Free, free, free anyone?
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EditArea is a free, open-source code editor that makes it easy for your users to share and format virtually any type of code from within the comfort of your website’s submission form. Features include easy integration, clean source-code output, real-time syntax highlighting, auto-indentation, multilanguage support, multiple instances, full-screen mode, and much more.
http://www.cdolivet.com/editarea/editarea/docs/
EDIT
Ok, kept on searching for you and hound the following…
http://en.wikipedia.org/wiki/EtherPad
It seems like its multi-user, openscource and java based. Also the wikipedia page has some alternative programs listed. The site of Etherpad is a disaster if you ask me, but I just skimmed it. Hope this helps.