I was just looking at the Google Video website this evening. It appears that the video store is now running. I clicked on a video for purchase just to see what happened, and it opened a frame on the side asking for my credit card information. Another interesting thing I noticed while checking this out was that the url purchases.google.com appeared at the bottom of my FireFox browser while checking this out.

Google just blogged about it. Quite a rare situation, when they blog about the very same event and almost in the same words in two different blogs:
"A new year for Google Video" in the Google blog – http://www.googlersblogs.com/node/933
"Google Video's New Year" in the Google Video Blog – http://www.googlersblogs.com/node/932

As you see from the addresses posts appeared almost simultaneously with the interval of less, than 50 minutes