This is pretty cool improvement as you can send files via iGoogle Chat.
Have you ever wanted to quickly send a file to a friend who's online? Now you can share pictures, documents and other files directly with your friends while chatting in iGoogle andorkut, without having to switch to email to send the file as an attachment. File transfer works directly in the browser so you don't need to install anything. Just start a conversation with a friend and click “Send a file...” in the “Actions” menu. After you select a file, your friend will be asked if they want to accept the transfer. You can learn more on the Google Talkabout Blog.