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I wish to create an Excel-like spreadsheet which gets a few simple inputs (let's say three cells with the input of a number) where then a fourth cell will calculate the sum of the square of the three numbers from cells 1 till 3.

After creation, I wish to embed this into a website, where people will be able to only edit cells 1 till 3 (but not cell 4).

Is that possible to do? (In Google Docs or any other service?)

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You can look at Wikicalc, an open source Wiki-Spreadsheet http://www.softwaregarden.com/products/wikicalc/

And if you are not so fixed on using a spreadsheet-like user interface, why not a "standard" html form, with javascript to do the calculation ?

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    +1 for suggesting to use an HTML form - particularly if this is to be embedded in a webpage. The HTML form could even be made to look like a spreadsheet if you wish, but more importantly it will probably work better for your users. – MrWhite Oct 6 '10 at 10:29

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