I downloaded a VM image of ChromeOS and booted it in Virtualbox.There's not a lot there. ChromeOS essentially is Chrome running fullscreen on top of a linux distro. As you can see, they haven't done much in the preference department yet. Everything points towards the local drive, no sign of real "cloud" power. It boots ok, just in 10 seconds. It browses ok. Works fine, youtube also plays ok-ish. However, try to save a file and it will. Try to open the downloaded file, and it won't do anything. I even got it to hang on this. Nice browsing OS for now, not much better than the Wii web experience though. Low resolution, low functionality.
Of course, once there are advanced webapps, like http://280slides.com that functionality will increase drastically. Once the resolution gets increased as well ;-)