This past week I used Google Apps to create a web space for my family. We desperately needed an online calendar and everyone told me that Google's is the best of breed. Using Google Apps for the calendar, instead of Google Calendar, also gave the family a great web-based email and rich document editing tools. The only thing missing is web site editing tools but for most families a blog would be sufficient and this can be done easily with blogger.
The only thing you need to get started is a domain name and, ideally, the ability to create sub-domain names. If you are local and need help doing the same call me.