Creating a new document
From the main Drive home screen you can select the red Create button and choose document from the drop down menu
This will open a new page in your browser for the document. As you begin to type in the new document Google will automatically save your work every min or so
If you wish to transfer the file to your computer after you have worked on it you can download a copy, in a variety of formats (HTML (zipped), RTF, Word, Open Office, PDF, and plain text), and save it directly to your computer
You can upload the following types of files into Google Doc
a. html
b. txt
c. odt
d. rtf
e. doc and .docx
To upload you click the red button next to the create button and select Files..
Once you select the files that you want to upload (you can upload one or more) click Open
To edit the documents in Google Docs they must be converted to Google Docs so check the box 'Convert documents, presentations, spreadsheets, and drawings to the corresponding Google Docs format' that should appear as the upload starts. If this box doesn’t appear click on “Settings” (the cog in the top right), select upload settings and check the box 'Convert documents, presentations, spreadsheets, and drawings to the corresponding Google Docs format'