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I was thinking of creating a web interface where team members could fill up their weekly reports online (instead of the individual by-mail submissions).
I could store this data in a database and then the whoever is interested could have a look at the data in whatever form they want. This would be a lot better than the "mail" method and it would help different views of the same data.
I was wondering if this data from the database could be used to create spreadsheets/reports customized to fit different peoples views.
If I were to use MS-SQL would that help in easily creating those docs in MS-Excel/ MS-Word formats?
Even if you have some general comments on this please let me know.

I have no experience in this but anyway...

MS-SQL Server shouldn't make it any easier/harder, it only maintains the database. You can use Access to generate reports, I don't remember if you export reports to Word, you should be able to. You can use COM Automation to create a program that opens word/excel in the background and generates the document/spreadsheet if you want, this is even possible with scripting in the webpage:(Naturally only works in Internet Explorer)

Hmm... never knew you could do that.
I should try that out sometime soon and see how it goes.

Note that you can use Access to generate reports on any ODBC data source AFAICR, basically making this independent of the database used.