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You would have to sync the project after one person edits it.  It is stored locally on one computer.  Also, only one person would have to edit it at a time, as multiple changes on a single page wouldn't sync.

I don't know, but iweb wasn't intended to be a shared editing application, which means there will be caveats, some of which can have severe impact. Proceed with care. Consider other options, such a good source management system.

,xtG
.tsooJ

I looked though the package contents.  I didn't see anything that looked liked a save file.  I found the 4.7MB  iWeb UNIX executable file under MacOS though.  Could that be it?

hmmmm

I found in the ~/Library/Application Support/iWeb folder a file called Domain.  I think this is the droid we're looking for.  Move along.

this is the advice that Apple gives you for doing this.

Tech note: Using iWeb on more than one Mac
A number of .Mac members have written in, asking if it’s possible to publish their iWeb sites from more than one Mac. It is, and it takes just a few simple steps. There are three things you’ll need: iWeb 1.1 installed on every Mac from which you plan to publish, some type of external storage to which you always have access (a folder on your iDisk, for example), and a basic knowledge of how to navigate the Finder.
When you create a website with iWeb, all your work is saved in a single file called domain.sites (it might appear simply as “domain” on your computer, but it’s the same file). By default, iWeb stores the file in the iWeb folder located inside the Application Support folder in your Library (Users/<username>/Library/Application Support/iWeb/domain.sites).
All you need to do is quit iWeb (if it’s open), locate the domain.sites file, and move it to wherever you’re going to use it. Then double-click the file in its new location. iWeb will launch, and you’re done. From then on, iWeb will automatically save your work in the new location, and you’ll be able to publish your site from any Mac that has access to it. Who knows, it could be the start of your global web publishing empire.

They don't say anything about concurrent editing and versioning, though. I'd still be vewwy vewwy careful.

,xtG
.tsooJ

We have multiple iMacs and have our iWeb domain.sites file (actually it's a folder with files in it but appears as a file) on a shared drive. We can each edit the file but we do not edit it at the same time as there is no locking on the file and last person to edit and save will have their changes reflected.

You can also have multiple domain.sites files if you have multiple websites and choose to keep each within it's own file, or if you have a large site and choose to break it up into multiple files. You just need to keep each file in a separate folder. Then to edit just click on each domain.sites file. Wish Apple would have an 'Open File' option on the File menu so you can open a different domain.sites file from within iWeb. By having multiple files you can then have more than one designer working on different parts of a site avoiding the need to work on the same file.