Looks like Chrome OS is getting some big updates at Google I/O ahead of the expected hardware announcements. First, there are new file management features, including document type recognition that can upload things straight to various cloud services from USB devices, and new live previews for audio and video files in a new media player. The live preview opens in a paneled window, so you can multitask, but it can also go full screen.  Google's also plugging support for online media services like its new Google Music Beta, YouTube HD movie rentals, Hulu, Mog, and Pandora. Google also says it's been working closely with Netflix, which would be a big deal, as Netflix's web player traditionally relies on Microsoft's Silverlight. Google's also beefing up Chrome OS's offline capabilities, and apps like Angry Birds can run offline.

We've been checking our Cr-48 and the update hasn't hit yet -- we're guessing it'll come closer to that June 15 launch date for the new Acer and Samsung Chromebooks.

Developing. Stay tuned to our Google I/O 2011 day two keynote liveblog for up-to-the-microsecond coverage.