Some extra features:
* paste a link to a video from YouTube or Google Video and you'll see the title of the video and a thumbnail. If you click on "Play" an embedded player will show up and you'll be able to see the video inside the gadget.
* paste a link to an album or photo from Picasa Web and the gadget will display a thumbnail and some details. If you click on "View", the photos will be displayed in a small slideshow.
* you can also add links to videos and albums in your status. If your contacts use the gadget, they'll be able to see the content without opening a new page.
* the gadget can be added to your web page, although it won't be very useful there.
Here's a video from Google that explains more about the gadget:
{ Thanks, Zbyszek Żółkiewski. }