Holy crap! We sort of have Office Mobile for iPad. If you have a hotmail/windows live account, go to the Office section when you log in. They have something like office lite that works in the iPad browser. I just created an excel sheet and a word document in my Sky Drive (25GB free). I opened them and edited them. Its a little slow and you have to be online obviously, but it works and it should be able to read "real" Office docs. I had read that this was coming, but didnt realize they already had it up and running.
Now, if they would just make an App that syncs all this locally, it would be perfct!