Lots and lots of rumours about Google and IM. Hello (part of the Picassa purchase) is an IM application -- Windows-only, proprietary protocol, used for image sharing/posting. It is more likely that Google will line up behind Jabber/XMPP, since:
Some thoughts of Google's play include tying gmail IDs into Jabber/IM IDs, potentially even having chat logs stored in a similar, Gmail interface (and showing text ads, which would fit with their business models). Of course, with an ID infrastructure, plus permissions and contact lists, things like filtering email/identifying spam becomes easier as well.
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Since Yahoo & MSN have it, if
Since Yahoo & MSN have it, if google doesn't do it it'll need to explain why they don't. I'm sure they've been asked that a bazillion times.