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Google integrates GMail (email) and GoogleTalk (instant messaging) into Google Chat. The integration is supposed to simplify the experience of sending text messages.

I have been given half of the features of the new integration. I am being allowed to have my Google Talk conversations archived into my GMail account. This is a a pretty nice feature, especially if you do a lot of work via IM (which we do, via GoogleTalk).

Laurie Flynn wrote an article on this for the NYTimes:
New Google Service to Blend the Gmail and Chat Features - New York Times. She notes the interface needs an overhaul. I want to note the interface is the exact reason why I dropped all other IM clients for GoogleTalk.

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