Microsoft has a fundamental problem competing with the online office application offerings like Google Docs in that they want to avoid cannibalizing their considerable Microsoft Office revenues. Therefore they have to try to emulate the desirable features of the online offerings while still requiring that the users have a fully paid up copy of Microsoft Office. That’s just what they did today when they announced “Microsoft Office Live Workspace, a new Web-based feature of Microsoft Office that lets people access their documents online and share their work with others.”