A post on the Official Google Blog confirms the company is currently "dogfooding" a "mobile lab". Beyond that, we're still in the dark, but it all falls in line with what we heard before. Updated.
Google isn't saying much, but the way the post ends with "We hope to share more after our dogfood diet" suggests that there's something coming. It's much more coy than their usual outright denials (by the way, Google, what about those?).
TechCrunch is reporting that the mystical Google Phone is indeed the HTC Passion we saw leaked a few weeks ago (pictured above). Our sources are calling it the Passion, too. Update: Now the Wall Street Journal is calling it the Nexus One.
Update: TmoNews is also saying that the device will be sold directly by Google, but supported by T-Mobile at launch. No word on if T-Mobile will be the exclusive carrier.