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Google Chrome OS – how does that work then

Google have said the Google  Operating System is a linux based browser that will run on top of your operating system i.e. Windows etc. Does this mean that this is a virtual operating system and does it boot from the Google servers like your are on one giant network. If this is true then will it speed up traffic on the Internet by caching everything. Or is it a Java based system but still pulls new or updated components from the Google servers.

It is like Google are doing what Apple have done with the ipod, iphone operating system but in reverse. Why do they no just release a webbook with a linux distro coloured up in google colours and sell or give them away for free with the android phone?

I will be chasing this project mainly because I like the Linux OS and all the variants and it would be nice to see Microsoft get some competition?

Is the G HO ST project the same thing http://www.g.ho.st/home/whatsGhostVc.jsp

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