The Wall Street Journal reports that Dell will be installing Google software on "millions of Dell personal computers." That means software like Google Desktop search, the Google Toolbar, and the default search engine will be set to Google on these Dell PCs. Google is paying Dell an undisclosed amount for this partnership.
Postscript From Danny: Dell embraces Google from News.com has comments from Google out of an investors conference about the deal. And in light Google's complaints about IE7 not allowing choice, this quote from Dell doesn't really ring true:
Our motivation is to deliver customers tools that enable them to search and organize information quickly and easily, right out of the box...Dell customers will have the option of choosing Microsoft as their default if they prefer.
Yep -- they just have to change the defaults in IE7, right? Except Google's argued that those defaults are too hard for mere mortals to alter. So consumers really have as much choice with the Dell deal as they have with IE7 -- that is, as much or as little choice as you think they are technically capable of.