Video ads: Asked if the overlays introduced at YouTube during the quarter meant they’ve decided to go with overlays over pre-roll and potentially post-roll, Brin replied: “We are very pleased with the overlay but I don’t think we are ever going to say this is it from now on. We are going to continue to test a variety of different formats.”

Making money from YouTube: Brin: “We’re certainly progressing on monetization for YouTube and what not, but that’s not the number one priority for that property right now. We continue to grow the traffic and improve the user experience. We continue to really improve the publisher experience and also, we are working on things like the fingerprinting, which we announced recently, which we have just really fantastic technology for.”

Google Gadgets: Sergey Brin talked up the global beta of gadget ads: “...You can actually put functionality into the advertisement so it is more than just something to look at and click but something you can really interact with.” Jonathan Rosenberg: “What is so powerful there is that the gadget ads just don’t serve up your simple brand impression. What they do is they get people to engage with the brand and then we can actually empirically measure the level of engagement, which is much more powerful than the things people have traditionally done with display.”

International: Asked specifically about growth in China and India, chairman and CEO Eric Schmidt said: “... we are starting from a relatively smaller base in a number of other countries, and so the growth rates are quite significant. We would expect that to continue until they get to some reasonably stable growth pattern. Both markets are growing quickly. Both markets are under-penetrated in the Internet as a whole.” He described both countries as “essentially an open field,”

Cloud computing: Schmidt: “... we are now seeing a massive transition to web-based cloud computing at a consumer and enterprise level.” Also some mentions of in-the-clouds computing—ie Google Gears, the effort to make web-based apps work offline. Google Reader was first; others en route.

Google Book Search: Larry Page said the number of partners is up to 27 and the book search index has passed 1 million books. Google increased funding of relevant book results “a lot” during the quarter.

If you have a spare hour you can listen to the whole call or, now that it’s up, you can search the transcript at SeekingAlpha.