The rumor mill continues to crank out stories about the Google PC and the Windows-challenging OS it will run. And now that phantom operating system actually has a name: Goobuntu. According to reports, Google has already developed the OS, based on Ubuntu Linux and the Gnome desktop, and may be close to rolling it out. Of course, Goobuntu may actually be just for internal use; Google has in the past admitted to using an internally developed OS for its servers. However, it could be the next step in Google's quest for desktop hegemony. We just hope it runs Google Earth and Picasa, or we're not interested.

Update:
Another Google rumor bites the dust, since according to Ars Technica, Google spokeswoman Sonya Borälv says that "[w]e use Ubuntu internally but have no plans to distribute it outside of the company." It's almost as if they enjoy crushing our hopes and dreams.

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Goobuntu: coming soon to a desktop near you?