I received another email today from the person who wrote last week. He has some more information about Google Music -- none of which I can confirm, but for what it's worth I wanted to pass it along to my readers.
1) "Google Music" is not going to be the final name. There are a few names on the table, including "GMusic" and "Google Tunes". I can't say either is a huge improvement.2) Google Desktop will have an interface for the music thing, with a search and media player built-in.3) <name censored> was sketchy on this part, but he was fairly sure that Google will reformat Google Video Player for all media. It should be able to play video and music, and maybe integrate Google Pictures with a picture viewer similar to Windows Picture and Fax Viewer.4) all music video previews on GMusic or whatever will be ".gvi" format, and that for copyright reasons the files would either be un-downloadable or cut to 30 seconds. I'm hoping for the former, I want to be able to see the whole video.
5) All music videos will have their own section in Google Video.
None of these points surprise me, they all seem plausible and predictable. It would make sense for Google to rework the existing Google Video Player to include any type of multimedia -- maybe we will see the name change to Google Media Player when/if this service is launched?