I believe you should be able to use a computer because that's what they will be using day to day. Check out http://fizzbuzzer.com/ . It allows you to send interview challenges to test a candidate.
https://code.stypi.com/ - shared code editor in the browser
Just use hangouts (we are using https://appear.in/ now, much better) and have them screenshare with you, this will allow them to use their own editor and setup and make them feel more comfortable.