My apologies if this has been posted here already. According to Scoble, he has it from sources that Google has been showing an office type suite to some folks:

"Today my network is telling me that Google is showing around some sort of new Office-oriented suite of services. But they are holding everyone they are talking with to an NDA/embargo. My sources wouldn’t even tell me when the embargo ends."

http://scobleizer.wordpress.com/2006/08/26/big-company-pr-turning-the-heat-up-on-the-pr-kettle/

Of course its all rumor and conjecture at this point. I think he was the same person that predicted big announcements from Apple a few weeks ago and that did not come to pass. It may have been simply that Apple did want to announce anything yet.
TonyB

Wow so I guess it will offer 2 way integration (If it's true)

So will it be based on Openoffice.org technology or is it developed in house ?