Document management does not scale beyond a single server, but scales great within a single server. For example, a quad Xeon machine with 4GB of RAM works great for a document management server that has about 900,000 - 1,000,000 document, but if you need to store 50,000,000 document and want to have them all in one single workspace then it does not scale at all. If you need a scenario like this, you need to plan your deployment right and it should scale for you, it just does not right out of the box.
If you are using your server as a portal and search server most for the most part it scales great. You can have many different servers crawl content sources and have separate servers searching and serving the content.

If you have < 750,000 documents per server and fewer than 4 content sources and fewer than 50,000 users, SPS should scale just fine for your needs with the proper planning.

SharePoint Portal Services (SPS) has MUCH better document management. It has check-in, check-out, versioning, approval, publishing, subscriptions, categories, etc. STS does not have these features, or they are very scaled back. SharePoint team Services (SPS) has a better search engine, and can crawl multiple content sources. STS cannot. STS is easier to manage and much better for a team environment where there is not much Document Management going on. SPS is better for an organization, or where Document Management is crucial.

Technically SharePoint illustrates neatly what Microsoft's .net strategy is all about: integrating Windows with the Web. Microsoft has previously made accessing stuff on a PC easier, (Windows) then on a network (NT) and now on the web (.NET). SharePoint is an application written to let a user access a web accessible directory tree called the Web Storage System.

SharePoint was written with a set of technologies that allow the programmer to pass data, functions, parameters over HTTP, the web's medium. These are XML, XSL and SOAP, to name a few I understand the basics of!

To the user it looks easy, like Hotmail, but every time they click a button or a link, a lot has to happen behind the scenes to do what they want to do quickly and powerfully. Not as easy as you might think, but SharePoint does it for you. Accessing this Web storage system and the server itself is also done using technologies like ADO, CDO, PKMCDO, LDAP, DDSC, ADSC. More on these later. SharePoint is a great example of how the Internet Platform can be extended and integrated into an existing well adopted technology, Windows.

Administering SharePoint mainly consists of setting it up, which is much easier than you expect, adding the content, which can be just dragging and dropping in whole directory structures and files, and then organizing the files better by giving them categories or other metadata. This is done either through the Web interface or through the SharePoint Client: a program what means you can access SharePoint as a Web folder and then right-click files to select options like "edit profile". Or add files by dragging them in individually or in bulk.

Setting the security is also important, using NT accounts, either NT4 or Active Directory (or both in mixed mode) you can give users access to files/folders the same way as you do in standard Windows. Users can be grouped and the groups given access privileges to help manage this better. Also SharePoint has 3 Roles that a User or Group can be given on a particular item. Readers can see the item (i.e. document/file or folder) but not change it, Authors can see and edit items and coordinators can set security privileges for the part of the system they have control over. Thus, you could set 12 different coordinators for 12 different folder trees, and they could manage who can do what within that area only.

"In Word 2003, you can compare documents side by side. Open two documents. Then, from the Window menu of one of them, select the Compare Side By Side command. If you have only two documents open, the command will automatically choose to compare them. If you have three or more documents open, you'll have to select which document to compare with the current file.

A floating toolbar with two buttons will open. If the button on the left is selected, Word will scroll both documents at the same time. Press the button on the right side of the toolbar to return to where the cursor was located when you started comparing."