We also used mercurial for a while in conjunction with dropbox (just set up our central repository in dropbox). Mercurial is a lot less overbearing than SVN (very easy to setup repositories), so I recommend it highly for a small team. Git is also a great option, but I haven't used it myself (and it doesn't seem like github offers free repositories yet unless you are an open source project).
You really want a real version control system. Trying to hack one up from backup systems is just asking for pain. VCS gives you much more than just a central off-site repository - you get commit logs, conflict resolution, diffs, rollbacks, branches, etc.
Oh, +1 for GitHub too. They're great.
If you prefer git, you can set up your own git repository with little effort by following this tutorial: http://scie.nti.st/2007/11/14/hosting-git-repositories-the-e...
I have used this tutorial to set up repos at work and a private repo.
AFAIK, github does not provide any private repositories for free.
The reason for choosing bitbucket? Stability and speed. I've encountered 50+ error pages on github and on several occasions their servers were down when I needed access to some code. I also feel their site it a little slow at times (it was pretty snappy in their invite only beta days though). Bitbucket on the other hand have never failed me (user for ~1 year) and the UI is very responsive.
Unfuddle seems like a reliable and popular choice.
I'd use it for a 2-person team. It's incredible.
(No. Use a repository.)
Lots of people are using github.com, I have been using unfuddle.com and it has worked out well.
I also make sure I install a SVN server on everyone of my development machines as soon as I get it. Takes minutes to do and will keep my projects and files save.
Source control, even for just one person, is useful and doesn't have to be heavyweight. Even single developers may need to roll back in time or read notes from a few months ago about why they made an obscure change. It's worth the minimal overhead to have the protection, historical data, and in a multi-user scenario, to know who's doing what so you don't step on each other's toes.
Whatever solution you choose, go hosted; it's straightforward, secure, and saves you the trouble of having to manage disaster recovery, network issues, and so on. Compare us to the competition and pick the one that's best for you. Good luck!
Google Code was my first experience with code repositories and using it with the TortoiseSVN right-clicky GUI software made things that much easier to manage. (I used the Windows XP version of TortoiseSVN.)
Google Code: http://code.google.com/p/support/wiki/GettingStarted TortoiseSVN: http://tortoisesvn.tigris.org/
Simple, no command line stuff, and did exactly what I needed it to do. :)
Yes you can use git for free if you know how to set it up, but for $12/month in your case ($7 in mine), I just like the convenience of having someone else continually worry and work on all that stuff.
It's also important to think like an entrepreneur. Focus on what you are good at, delegate everything else to people good at those things.
Git specifically:
I knew absolutely nothing about version control when I started looking into it. (about a month ago). My project will soon be open source so i know I needed to start thinking in terms of version control. I picked git over svn very simply because git was made by Linus. Git seems (to me) to have a better quality following as of now. I like being in the best company (it's bound to rub off).
This tutorial was/is very helpful to me: http://hoth.entp.com/output/git_for_designers.html
I am still a huge beginner when it comes to git, but I find the core commands mentioned in the tutorial to be simple and very effective.
Best of luck.
svn isn't really that much harder.
It's my friend Adam's app (he's an admin at Rails Forum). I've never used it personally, but from what I have seen it is pretty nice and I know anything Adam is involved with must be solid. So, just presenting it as another option.
It's sort of like Basecamp + Git with a little Lighthouse thrown in for good measure (or something like that). ;)
git push dropbox
You can run into issues if two people push to the Dropbox before the files get fully sync'd between computers, if that's the case, you need a hosted solution see the gitosis project for rolling your own or github.com for a slick paid solution.I would stick to svn if the team is already familiar with it but not with git. Otherwise, +1 to github.
Our personal setup: linode with svn, redmine as issue tracker, wiki, and discussions). I went with our own server because I know for sure our data is private, and fine grain control.