The Register reports that Google is working on their own flavour of Linux based on Ubuntu, a distribution which has been gaining popularity in the Linux community. Unfortunately, there is absolutely no real proof that Google is doing this -- like Philipp Lenssen, I will be waiting for an official word on this one before I jump to any conclusions. An operating system seems a bit far out right now, but a product offering like this would definitely not surprise me in the future.
After spending a few hours digging, I was unable to uncover anything about a potential Google/Linux offering. I will continue to look for any indication that something like this is in the works and will keep you informed.
In other rumors, Google is apparently buying Napster. A Google spokeswoman denies the claim by saying "We have no plans to acquire Napster, nor do we have plans to develop a music store at this time" in this Reuters article. A future music service would make sense for Google though -- the ability to purchase songs you like, and discover ones you don't know about would be a great use of Google's personalized search technology.