I the short time I had a developer to help, we used Subversion for source control (which is excellent). We have a fully licenced dev/test/prod 3 tier setup, so we did our initial development on our own personal servers and uploaded the files to dev after checking them in to the SVN repo. To people editing the same file at the same time isn't too bad as long as you can deal with the merge afterwards - it's still best to avoid it if possible.
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