Google Moves Tabs to Side Bar in UI Test
Reported over at ThreadWatch a screen capture taken over at http://www.glenn.ca/google.gif of Google pushing the tabs (Web Images Groups News Froogle Local) to the side bar menu.

In my opinion, it takes up too much screen real estate.
Forum discussion at Search Engine Roundtable Forums and Search Engine Watch Forums.
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rustybrick in Google Search Engine at December 16, 2005 1:12 PM
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