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Document Management and Version Control? 326

Tom wonders: "I am working in a medium-sized software development company. The functional analysts use Microsoft Word to document the specifications, and Sharepoint to publish the documents. However we'd like to improve our process to have better revision control and traceability. We have looked at alternatives like using Wikis, or static HTML documents with CVS. The functional analysts want ease of use, while we developers would like to see high-quality end products, revision control (i.e. tagging & branching of the document base), and traceability features. What tools and document formats do you use and would recommend?"

All power corrupts, but we need electricity.