The people writing the user manual are not necessarily programmers, and they need a visual editor. A major issue is the internal format of the authoring tool; it should be readable text/html, so it's easy to compare versions of individual pages checked into version control.
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10What is a good tool for writing a user manual (help file), which integrates with version control
We are using APT. It integrates well with the CI (standard build artifact) and is more alive than for instance word document. It is also possible to generate PDFs and other formats when needed.
Microsoft HTML Help Workshop can be used to create good quality professional CHM help files. All you need is a bunch of HTML files. The tool "compiles" all these and bundles into a single Help file. The HTML files can be generated using Microsoft Word/Frontpage or even Dreamweaver. You might want to consider source controlling these HTML files.
I created a documentation system called Mandown (Markdown/Html/Javascript/file-based relatively linked documents for portability) which would easily go under version control. The visual editor part you would have to figure out separately - I sometimes use HTML-Kit which at least has a preview feature.
See:
http://stackoverflow.com/questions/99419/what-is-the-best-way-to-store-software-documentation#99600
Here's another tool to check out:
Xilize 3.0 http://xilize.sourceforge.net/
If you're using Visual Studio, take a look at SandCastle - http://www.codeplex.com/Sandcastle.
There's also a couple of tools that help you build sandcastle files, try searching "sandcastle" on codeplex. One of them is SandCastle Help File Builder (http://www.codeplex.com/SHFB), but I've never used it so I don't know if non-technical users will be happy with that.
There are other professional products which allow help file writing and they have support of "context ID" which makes context sensitive help possible. Doc To Help and RoboHelp are these type of products.
At my old job they used a tool by madcap software called flare.
It seemed to word really well.
You can use Subversion and MGTEK Help Producer. Help Producer makes help files from Word documents. TortoiseSVN comes with scripts to compare different revisions of Word documents, in Word itself (Word has a version compare tool).
Your users are going to want a visual diff tool that resembles the one they are editing in. If they are just slightly not-technical, DocBook or Latex aren't going to work (I've tried giving my users both, and I even tried Epic Editor as a DocBook editor which is very expensive but didn't work out very well after all). Sticking to something they know (Word) will prevent you many headaches.
I was very reluctant to go this route at first too, because I wanted a solution that was more 'technically perfect', but I realized over time that having happy and productive users was more important. Just saying that I know where you're coming from, but try the Word route - it works much better in practice than all the 'pure' text-based solutions that are out there. Regular users don't like markup based editing.
Mapcap Flare is the best commercial tool around. Written by the ex-developers of Robodoc