Finally, Google Co-Founder Larry Page takes the microphone and thanks the Chrome browser team and compliments them for their efforts.

This is–as anyone on the receiving end of Page’s sometimes pointed manner knows (and BoomTown has been)–a big deal.

Page also starts to talk about how browser choice and innovation could make the planet a better place.

Of course! World peace through better browsing!

Then he moves on to questions from the media, bringing some of the Chrome team up to the stage.

There’s a sequence of very serious questions on how to move tabs, privacy, mobile issues, WebKit, bug testing, Incognito, distribution plans and ongoing support for Mozilla’s Firefox (yes, it will continue–plus, Mozilla HQ is across the street! Hmmm…).

Ooops–the other Google (GOOG) Co-Founder, Sergey Brin, suddenly arrives late. He slips into the lineup of “Inside the Actors Studio”-type chairs, looking like he just woke up, in what is a classic move by Microsoft’s Bill Gates that I like to call the “bed-head maneuver.” (I like the spanking red Crocs though!)

It’s a sleepy ruse, as it turns out, as Brin deftly deflects a question about whether Chrome is an operating system for the Web, given that Internet navigation software has become so integral to consumer behavior.

As in, a Windows killer!

Nope, says Brin (full video answer to come), totally ignoring my dubious look.

The distribution question is key, of course, since Google will want to get Chrome out there. So what’s the secret sauce? Because it is a “great product,” says Page.

As to why Google was doing this, VP Sundar Pichal said the search giant wanted to “start from scratch” in the browser game. Like baking a really good cake, one would assume.

When no reporter would get up and ask the obvious what-about-tweaking-Microsoft question, I finally did and also asked about the business plan for Chrome–as in, how will it help Google make more money?

Both Brin and Page answer again that it’s all about providing choice and also keeping the Web open, which will spur usage, which will rain more magical moolah down on the Googleplex.

Also (and video to come on this too), Brin later adds, Google never thinks of Microsoft (MSFT).

Well, at least on that issue it seems we’re back to Pinocchio–the long-nosed version–again.

Soon to come: BoomTown’s Chrome Launch video and one of just the sleepy-as-a-fox Brin on Chrome!

Until then, here’s the exclusive review in his Personal Technology column of the new Google Chrome browser by AllThingsD.com’s Walt Mossberg, which was published at the same time as the news of its product launch was announced by the search behemoth this morning.

Walt’s reaction is mixed:

“My verdict: Chrome is a smart, innovative browser that, in many common scenarios, will make using the Web faster, easier and less frustrating. But this first version–which is just a beta, or test, release–is rough around the edges and lacks some common browser features Google plans to add later.”

Anyone can now download Chrome, but Walt has been testing it for a week. He also reviews Microsoft’s newest version of its powerful Internet Explorer, called IE8, which he likes better than Chrome.

Money quote: “The second beta version of IE8 is the best edition of Internet Explorer in years. It is packed with new features of its own, some of which are similar to those in Chrome, and some of which, in my view, top Chrome’s features.”

A little tarnish on the Chrome, it seems.

Please see this disclosure related to me and Google.

But just how good is Chrome? How does it differ from IE and from less popular, but still important, browsers like Mozilla’s Firefox and Apple‘s Safari?

I’ve been testing Chrome for about a week, trying out all its features and using it side by side with Microsoft’s latest iteration of IE, which came out just last week.

My verdict: Chrome is a smart, innovative browser that, in many common scenarios, will make using the Web faster, easier and less frustrating. But this first version — which is just a beta, or test, release — is rough around the edges and lacks some common browser features Google plans to add later. These omissions include a way to manage bookmarks, a command for emailing links and pages directly from the browser, and even a progress bar to show how much of a Web page has loaded.

Chrome’s interface has some bold changes from the standard browser design. These new features enhance the Web experience, but they will require some adjustment on the part of users. For instance, Chrome does away with most menus and toolbar icons to give maximum screen space for the Web pages themselves. Also, Google has merged the address bar, where you type in Web addresses, with the search box, where you type in search terms. This unified feature is called the Omnibox.

One striking difference in Chrome is how it handles tabs, which display a single Web page. In Chrome, each tab behaves as a separate browser. The bookmarks bar, Omnibox, menus and toolbar icons are located inside the tab, rather than atop the entire browser. The tabs appear at the top of the computer screen. Chrome also groups related tabs. If you open a new tab from a link in a page that’s already open, that new tab appears next to the originating page, rather than at the end of the row of tabs.

Despite Google’s claims that Chrome is fast, it was notably slower in my tests at the common task of launching Web pages than either Firefox or Safari. However, it proved faster than the latest version of IE — also a beta version — called IE8.

Meanwhile, Microsoft hasn’t been sitting still. The second beta version of IE8 is the best edition of Internet Explorer in years. It is packed with new features of its own, some of which are similar to those in Chrome, and some of which, in my view, top Chrome’s features.

Google’s Chrome browser displays thumbnails of a user’s most-visited pages when a new tab is opened, rather than a blank page.

For example, while IE8 also groups related tabs, it assigns a different color to each such tab group and allows you to close them all with one click. It has a “smart” address box of its own, that drops down a list of suggestions as you type, though it retains a separate search box.

IE8 also has breakthrough privacy features that exceed Chrome’s, and includes a new technology called Accelerators, which allows you to take rapid action on any selected word or phrase on a Web page, such as generating a map for a place name, without switching to a new page.

As they develop, each of these browsers has a good chance of besting Firefox 3.0, which I have regarded as the best Web browser for Windows, the only operating system on which Chrome currently runs. But they will have to get faster at loading pages. And, to best Firefox on the Macintosh, Google will have to make good on its promise to produce a Mac version of Chrome, something it says it will do in the coming months. Microsoft has no plans to produce a Mac version of IE8.

Chrome and IE8 are far more advanced than Apple’s Safari. Safari is speedy on both Mac and Windows platforms, but lacks many of the key intelligent features of its newer Google and Microsoft rivals.

Why is Google igniting a new browser war? There are two main reasons, and both involve competing with Microsoft. First, the search giant fears that because its search engine and other major products depend on the browser, Microsoft — with its rival online products — might be able to gain an advantage by altering the design of IE, which has roughly a 75% market share.

Second, and more important, Google sees the Web as a platform for the software programs, or applications, that currently run directly on computer operating systems, notably Microsoft’s Windows. It says current browsers lack the underlying architecture to enable future, more powerful Web applications that will rely more heavily on a common Web programming language called JavaScript. Chrome was designed to be the world’s speediest browser at handling JavaScript.

That move might one day make Chrome a sort of online operating system that competes with Windows. “Think of Chrome as more than a simple Web browser,” Google declares. “It’s a platform for running Web applications.”

Microsoft’s IE8 has an “Accelerator” feature that lets users select any Web text and then map, translate, search or email their selection without leaving the page.

I tested Chrome, and IE8, on a plain-vanilla Lenovo ThinkPad laptop running Windows XP, and equipped with a modest processor and one gigabyte of memory.

To gauge Chrome’s speed at loading Web pages, I launched two large groups of typical Web pages simultaneously, each site opening in its own tab. One group included 15 sports sites, the second 19 news sites. In both tests, Chrome’s speed fell in the middle, at 35 and 44 seconds, respectively. IE8 was slower, taking 49 and 75 seconds to open the two groups of sites. But Firefox and Safari were much faster, notching identical speeds of 19 seconds for the 15 sites and 28 seconds for the 19 sites.

Google claims that future, more sophisticated Web applications relying more heavily on JavaScript than today’s sites do would run faster on Chrome. Of course, I couldn’t test any claim about future scenarios, but I did run Chrome on several JavaScript test sites, used by developers. It handily beat the other browsers. However, Google doesn’t claim users would see much difference on current Web application sites.

I also tested Chrome’s compatibility with scores of common Web sites. In general, it did well, rendering the sites properly. But I ran into problems with video. Some video sites refused to recognize Chrome, because its development has been a secret. On others, like Major League Baseball’s site, videos mostly played properly, but sometimes didn’t.

IE8 also has some compatibility issues, for different reasons. It’s the first version of Internet Explorer to hew closely to Web standards. Earlier versions used some nonstandard ways of rendering Web sites, prompting some site designers to adopt techniques that made their pages work in IE, but look odd in Firefox and Safari. Now, ironically, these pages also look strange in IE8. So Microsoft was forced to build in a special Compatibility View button that users must click to see the sites properly.

Chrome is built on three core design principles. The first is its spare user interface: just two menus and a handful of toolbar icons. IE introduced a similar approach in its version 7, but with a difference. Microsoft allows users to restore a traditional menu bar; Google doesn’t. The only toolbar icon you can add in Chrome is a Home button.

The second principle is that a user can type anything into a single place, the Omnibox, and instantly get suggestions on where to go, gleaned from the user’s own browsing history and Google’s rankings of popular sites. Whether you type in a Web address or a search term, the Omnibox is very smart. In my tests, it sometimes came up with the right destination after I typed only one or two letters of the name of a site I often visited.

The Omnibox has another cool feature: Tab-to-Search. If you type in the name of another site that includes its own search feature, like Amazon.com, the Omnibox lets you just press the tab key to search within that site, without opening it first. Chrome, through its Options settings, also lets you change the default search engine used by the Omnibox. Instead of Google’s own search service, you can use Microsoft’s Live search, Yahoo search, or others.

The third big principle behind Chrome is that each tab runs, under the hood, as a separate browser. Tabs can be dragged off the main browser and turned into separate windows. If one tab crashes, the rest of the browser keeps running. But this doesn’t work perfectly. In my tests, all of Chrome died on me when I tried watching an Olympics video on the NBC site.

You can even make a tab a standalone application that runs from the Start Menu, or the desktop, as if it was a separate program.

Chrome has a few other key features. When you open a new tab, you don’t get a blank page, but a set of thumbnails for your most-visited pages, plus lists of recent search engines you’ve used, recently used bookmarks and recently closed tabs.

Like other browsers, Chrome puts up a warning when you try to visit a malicious or phony Web site, and it has a private browsing mode, called Incognito, which allows you to browse without leaving any history on your computer — a feature popularized in Safari.

Chrome also has a pop-up blocker, but it’s annoying because it flashes a notice that a pop-up has been blocked. IE also does this, but unlike in Chrome, the warnings are much less intrusive.

Internet Explorer 8 has some new features Chrome lacks. Its private browsing mode, called InPrivate, is the first I’ve seen that not only leaves no traces on your own computer, but also bars Web sites from collecting some types of information on where you’ve previously been surfing.

While IE8′s address box and search box remain separate, each also offers rapid suggestions; and both are organized better than Chrome’s. For instance, the suggestions that drop down from its address bar are divided neatly into categories drawn from the browser’s own guess, your history and your favorites. One downside: For this to work in Windows XP, you must first install Microsoft’s desktop search product.

Like Chrome, IE8 lets you switch your default search provider, but it also allows you to switch search engines on the fly. When you type in a search term, icons for alternate search engines appear at the bottom of the suggestion list, and you need only click on these to see search results from, say, Google, instead of Microsoft’s own Live search engine.

IE8′s Accelerators feature presents a blue-arrow icon above any text on a Web page that you have selected. Clicking on the icon brings up a list of actions you can take using the selected text, such as posting it to a blog, emailing it, mapping it or searching it. While these actions are set by default to use Microsoft’s own Web services, you can change them to use Google’s, Yahoo’s, or those from other companies.

Microsoft also has built in a feature called Web Slices. These are portions of a Web site that a site developer can designate to appear in the IE8 Favorites bar and to constantly update themselves. An example might be bidding on eBay.

Like Chrome, IE8 also displays useful information whenever you create a new tab, including a list of recently closed tabs and a list of Accelerators.

With the emergence of Chrome, consumers have a new and innovative browser choice, and with IE8, the new browser war is sure to be a worthy contest.

Find all of Walt Mossberg’s columns and videos online, free, at the All Things Digital Web site, walt.allthingsd.com. Email him at mossberg@wsj.com.

Now, we have two Googlers, who are demoing Google’s new Chrome browser and its features and user interface.

“Friendly” tabs, knowing your history better graphically, auto-typing, simplicity, easier downloading with a new window that one guy is calling a real app like “Pinocchio, because we wanted to build a real boy.”

Well, Pinocchio was wood for most of that story, but I like the effort!

Also, they show off the “Incognito” feature, where you can hide Web searches you don’t want others to see, which basically means porn and Barry Manilow fan sites.

Except the Google (GOOG) guys use a toe fungus search!

This is gross, although hiding toe fungus is a good idea related to Web navigation software.

Now, another smart-looking guy comes on, who looks like the other guys, and discusses the architecture, including rendering, security and so forth.

Also a speed test, from another Google guy, from Denmark, where Google’s Chrome–incredibly–beats Microsoft’s Internet Explorer! It is like one of those blind taste test commercials on television.

My mind starts to wander and I wonder if Microsoft Founder Bill Gates is watching this and getting plenty steamed up north at Microsoft (MSFT) HQ.

At this point, I suggest you please watch the Webcast of this demo to listen to the details, available through both Windows Media Player and RealPlayer.

Because once the Googlers start talking “plug-in bugs,” I start staring at Google co-founder Larry Page–who is here sitting with with top Google exec Marissa Mayer off to the side–to see if both are paying rapt attention.

They are, natch. (I should have eaten a tasty pastry.)

Please see this disclosure related to me and Google.

Though its Simon-esque logo and unconventional announcement in the guise of a comic book might seem to suggest otherwise, Google’s Web browser, Chrome, proves the company is taking the browser war seriously.

Here’s a quick-and-dirty executive summary of the project’s highlights in advance of its Tuesday debut.

SPEED

Chrome is based on the open-source rendering engine WebKit–the same engine used by Apple’s (AAPL) Safari browser and Google’s (GOOG) own Android mobile platform. WebKit is known for its speed, responsiveness and smart memory management. And Chrome will undoubtedly use it to render the full-blown applications we so often encounter on the Web these days, with ease. Adding a bit more speed to the browsing experience is a JavaScript Virtual Machine called V8, which specifically accelerates JavaScript’s in-browser performance.

STABILITY

Chrome is also multi-threaded, meaning it can perform multiple processes at the same time. Each application is given its own memory and its own copy of global data structures, just as it would be in a typical operating system. Applications will launch in their own windows. And if one should hang or crash, it won’t affect the others or crash the whole browser because it has essentially been partitioned off in its own sandbox.

USER EXPERIENCE

Chrome features a tab-based design where the tabs appear above the browser’s URL window and control buttons. Each tab has its own controls and address bar called “Omnibox” with auto-completion features as well as previous and suggested search functions. New tabs will open with a display of a user’s nine most-visited pages.

PRIVACY/SECURITY

On the privacy and security front, Chrome offers an “Incognito” window, which logs no browsing information whatsoever. Beyond that, it allows only pop-up windows that are user-initiated. And it maintains a continually updated list of harmful sites and warns users if they try to browse them.

STANDARDS

Finally, Chrome will include Google’s open-source local runtime, Gears, and be released as an Open Source project.

THAT’S NO MOON BROWSER. IT’S AN SPACE STATION WEBTOP

It is an effort that seems to be striving for quite a bit more than Microsoft’s Internet Explorer 8 (MSFT) and Mozilla’s Firefox 3. In fact, with its view of the Web as a Web of applications, and its multi-process/multi-application design, Chrome almost seems more a Web desktop than a Web browser, doesn’t it? Funny, isn’t it? Google has long been rumored to be developing a browser and an OS/desktop environment. Who would have thought they’d be the same thing?