Here's the logo...

BTW, it's out. Get it at talk.google.com

There are rumors that Google will launch a Jabber-based IM service on Wednesday.
Neowin.net member Tom Servo confirmed that talk.google.com is an active Jabber server.
Last of all, you can login to the server using your Google account name and password with any Jabber client.
Several un-named Google Executives have confirmed that Google will be announcing "Google Talk" on Wednesday.
BTW, someone telnetted the server and sent an XML stream, and got an XML response, which confirms that talk.google.com is a Jabber Server.

No. Seriously.
Google's buying Meetro, but not for IM. It's more like Orkut, based on community concepts. Although Google has Hello, it's not gonna be an ideal IM protocol/client. Hello is for sharing photos, not chatting.

If Google is really gonna do IM, they should write a Jabber client (or buy one).
Transports are terrific, Jabber/XMPP is XML-based and is superior because the protocol itself is extendable.