As a writer, that sounds like an awesome idea.
Are you saying when you send it would be something like this?
A writes Ch 1 --> B
B writes Ch 2 --> C
C writes Ch 3 --> D
D writes Ch 4 --> A
A writes Ch 5 --> B
I suppose the main things to organize would be the genre, how long each person has to write his/her section, how many partners, and general length for each chapter (all right, perhaps the last one it's too critical for a lighthearted swap). The idea has me interested, even if it can't really work via Craftster swaps.