As we might expect, Google Scholar has raised a lot of interest. There's an interesting Weblog entry from a guy who works for Ingenta on working with Google to enable content to be 'crawled'—rather 'techie' for a non-nerd like myself, but interesting nonetheless.
Search Engine Watch also has an item - a moan about the lack of documentation, so that we don't know what Google Scholar actually covers - a very necessary moan, particularly when students these days seem to believe that if they can't find something by using Google, it doesn't exist.
I haven't used 'Scholar' much yet, but I don't like the output form: for some totally irrational reason, I'm happy to put up with it for a Web search, but the format doesn't fit my conception of what output relating to the scholarly literature should look like. I'll have to take a closer look and figure out why I have this reaction.