A WebmasterWorld thread reports seeing Google Local results above the sponsored listings on the right hand side of the Google search results page.
Back in December, I reported at Search Engine Land that Google was testing vertical results in that top right position, such as video search results. You can see a picture of that in action at Google Blogoscoped.
The WebmasterWorld thread reports it to be very similar, but instead of the video vertical, it is the local results vertical coming up.
I am seeing a different layout in the Google SERP's since early last week, specifically the Local Business listings are showing up in the upper right hand corner.
I can only get this to work using Firefox--no IE or Opera much like some changes that were tested back in May 07. Is this a Firefox add-on I have installed or is G testing again?
Google is frequently testing layout changes to the search results page, so this is not uncommon to hear about. It is however, uncommon to see first hand.
Forum discussion at WebmasterWorld.
Update: And more reports in this AdWords WebmasterWorld thread.
Update: There are now screen captures available at Flickr that show this in action.