Rather than re-invent the wheel here, I will point everyone to Scot Wingo's blog on Google Checkout. Lots of valuable info there and other links available.
Scot's company ChannelAdvisor (one of our portfolio companies) is one of a handful of launch partners with Google on this. Lots of good PR around this relationship.
It was last year - June '05 that I shared that Google was working on this project.
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