I forgot, again, the #1 rule of life with Apple -- wait two months after any major update before use. Apple doesn't pre-release non-OS software to vendor partners, so they need at least two months to fix their software.
Update 10/13/07: It's been six weeks now. Google's Picasa Web Album Mac Tools page still says this:
The Picasa Web Albums Exporter is a plug-in that lives right inside iPhoto™. Select photos, choose Export in the File or Share menu, and upload them directly to your web album.There's no mention that the plug-in no longer works. A month ago a developer commented on a post of mine saying that they were working on a fix, but there's been no communication since through any venue. Plaintive calls turn up every week or two on the Picasa Web Album Google Group.
I know a bit about the vertical IT market. In that market resources are very tight and timelines are long. This kind of thing happens in our market, but it's amazing to see it happening to Google. Microsoft moves with lighting speed by comparison, and they would have updated their publicly facing material weeks ago. Even Apple would have communicated better than this, and they're notoriously close mouthed.