Google Wave sounds VERY cool.

Google is about to hit a milestone for a product that the search giant hopes will transform how people communicate and collaborate online, and perhaps hook more users on Google’s menu of web based services.

Google Wave, which combines elements of email, instant messaging and social networking to allow groups of people to collaborate on a task in real time, will be previewed starting to more than 100,000 developers and users who have signed up to try Wave and give Google feedback on how well it works.

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Wave users running Ribbit’s applications could, for example, hold a telephone conference that would connect through any kind of voice communication – a mobile phone, a land line or voice-over-internet – and then store a recording of the resulting conversation as an audio file or transcribe the conversation into a text document embedded in the Wave.

Another application Google demonstrated on its blog included a group of friends in scattered locations using the online version of the Lonely Planet guides to plan a trip to Australia through Wave, searching out attractions in Melbourne with Google maps, reading Lonely’s Planet’s description of those places, messaging their thoughts with the rest of the group, and collectively writing up a day-by-day itinerary, within one wave.

The idea here is real-time collaboration on the web. For many of us who have “virtual companies” with workers working remotely in different locations, Google Wave could revolutionize how we work.

There are some issues with Microsoft’s Internet Explorer (big surprise) but it’s supposed to work well with other major browsers.

A demonstration is available here.

Google has sent out a bunch of invites for people to use the beta version of the product, and naturally people are all over this on Twitter, as some are trying to sell their invitations – #googlewave.