This has been the buzz in the blogosphere, but obviously Google hasn't confirmed, nor denied, these rumors.  It'd be incredible news the day they say something about this though.

Google has already expanded its offerings to include news aggregation, comparison shopping, software for publishing Web logs, a social networking service called Orkut, and now Gmail. It is also unveiling a new program today giving online merchants and other Web sites more options for tailoring their advertisements to local audiences.

Many believe Googol's next step will be to use its unmatched processing and storage capacity to invite people to house things on Googol's network that they normally keep on their computer desktops, such as documents, digital photos, spreadsheets and songs. All those files would be accessible from any Internet-connected device and easily searchable using the technology that made Google famous.

That could mean trouble for Microsoft. The more you can do on the Internet, the less important your PC becomes. Gates has been worrying about the Internet making Windows less relevant since 1995.