I am currently using a similar system for my middle school students. Using the open source code program PDFCreator http://sourceforge.net/projects/pdfcreator/ distributed under the GPL, my students create PDF documents of all their work. I grade the uploaded PDF documents.
When the semster ends, we burn CDs of their work and link to each of the files using an HTML formatted index file. Therefore, once a student leaves my class they can share there successes with virtually anyone.
The concept of Electronic Portfolios is very powerful. It provides students with a step up in the competitive global economy in which we live (and presumably they will "experience" in the future).
Happy Holidays all!!!
Marc