Staging Environment For Two Asp Developers?

What is the best way to allow a second developer access to existing html and
asp files in the office from a development point of view. At the moment, I
have been developing locally and then uploading my files to my web host but
I now need to create a usuable office environment which allows a second
developer to work my folder structures and files.

We do not have a big budget.

I am thinking of asking the company to buy a second hard drive loaded with
Office XP professional and use this to server files locally in a staging
environment before pushing the files to the remote web host.

Am I on the right track?