As of right now you can only view Google documents, not create or edit them. What I've been doing is taking excel sheets that I use for reference and put them in my Google docs. Then I have a short cut to them on my 'desktop', or just bookmark the Google docs page or m.google.com. A bit of a pain if I'm not on WiFi (we don't have 3G yet). You can also attach it to an e-mail, but I found that to be even slower.
I can't wait for them to have a Google Doc reader on the phone. I tried downloading one of the docs, putting it on my SD card and reading it...didn't work. Google phone can't read Google docs, go figure.
Also reading around here, or online, QuickOffice is making an Office Suite for the phone.

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