Android is the name for Google's "Open Handset Alliance." Last year, rumors were flying about a so-called "Google phone" that was to compete with Apple's iPhone.
As it turned out, Google wasn't actually developing their own phone, but a open platform for the development of applications on mobile devices. The name of that platform is Android.
There aren't currently any devices available on the market running Android, but there will be soon.
This looks like a competitor for Windows Mobile, instead of the Apple Mobile OSX, which is a good thing, since I'd really like to see Microsoft step up and build a better mobile OS.
I agree with Dave, this looks moreso like a competitor to Windows Mobile. Some of those features sound and look pretty neat, however it will all come down to the developers and which phone companies will adapt it. I'd like to see where this all goes.