According to slashdot, it's an AJAX version of OpenOffice. It will be interesting to see how it named since I think a lot of goffice.com-type domains got bought up when the speculation about this first started. Slashdot's article is here:
slashdot.org/article.pl?sid=05 ...

I can't hear the stream (dunno if it's the Linux realplayer or just full) but it seems that the deal is that google will distribute some Sun technologies such as Staroffice and Java Desktop:

news.yahoo.com/s/nm/20051004/b ...

A bit less exciting than I'd hoped, but will still be fun to see how this pans out.