If you hit the Toolbar Options page (by clicking the "Google" on the toolbar), you will see that there are some new options that you can check. I don't know exactly how they got them downloaded, because I didn't do anything to cause them to be available.
The new features:
Open a new window to display results each time you search Keep a search history in a drop-down list under the search box Preserve the search history across browser sessions Automatically run a search when you select from the search history Button text labels: All text Selective text only No text Search Directory button, to search the Google Web Directory Search Usenet button, to search Usenet discussion groups Category button Word-find buttons, generated from search terms
The Google toolbar is very cool.
There should only be packets going to Google when you browse if you select the options in the Advanced Features section of the options. Google is too smart to screw around with this.
There is a packet sniffer that comes as an optional install with Windows 2000, BTW.