Google already own Joerg Heilig who was a Project Manager for StarOffice. Will this be an online version of Star Office integrated into GMail or something like this? It could hardly just be a calendar app. Not when you have both Sun CEO Scott McNealyand Google CEO Eric Schmidt announcing this at the Computer History Museum.
The biggest thing about this to me is where the application resides. Will it be Desktop based or server based? If server based it will freak out Microsoft quite a bit. I think a table and a chair might fly over this.