I remember seeing a website like that, it was a "multiplayer flash whiteboard" and dozens of people were connected at any given time. It was mostly full of penises and other sexual drawings, as you would expected.

This is the output from a recent session on #startups:

http://www.skitch.com/swombat/n2drp/woobius-eye

grin

Yahoo Graffitti is a similar game http://games.yahoo.com/games/rules/graffiti/rules.html?page=...