Creating a common workspace under OS X

I thought this would be simple, but I'm having trouble coming up with an answer.
I have several people who will be using a single Mac to do their work, and they would like to have a way of sharing read/write access to certain files. I thought I could just tell them to save or copy the files in /Users/Shared but it seems this only makes the files readable to others. What I'd like is to have a directory where anything placed in that directory is automatically readable/writable by a group of accounts on the computer.
I thought this would be easy with Leopard's introduction of Groups under the Accounts System Preference and more granular control in Sharing, but so far I haven't found what seems like a "right" approach, even with chmod.
Any suggestions? Thanks in advance.

Thank you, that gets me close. However, when I tested your solution I found that it didn't quite work. I.e.
1. Followed your instructions, except I named my group 'editing". I have two users in the group, named test1 and test2.
2. With test2, created a new folder "untitled folder" under /Users/Shared/sharedstuff. Then also opened Textedit and saved a new file "untitled" into /Users/Shared/sharedstuff.
3. As test1, I can now open and delete both "untitled folder" and "untitled". I can create new subfolders under "untitled folder". However, if I open "untitled", make changes, and try to save, I am told that I don't have permission.
Unless I am confusing myself somehow, it seems that the permissions are only being inherited to subdirectories, not to files. E.g.
ls -le
total 8
-rw-r--r--@ 1 test2 staff 324 Nov 6 16:25 Untitled.rtf
drwxr-xr-x+ 4 test2 wheel 136 Nov 6 16:17 untitled folder
0: group:editing inherited allow list,addfile,search,delete,add_subdirectory,delete_child,chown,file_inherit,directoryinherit
I think in particular I want "add_file" and "add_subdirectory" to be inherited and translated to "write" and "append" for files in the sharedstuff folder. But it isn't happening. Can anyone confirm this? If so would it be accurate to call this a bug?

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