Finally. I got the reply from Google - they want me to fly-in for an on-site interview. They will handle the flights, hotels, eating and other relevant issues and all I will have to care about is providing good answers to the questions that their engineers will be bombarding me thorough the day.
Unfortunately this silver lining has a little cloud in the middle - USA is out of H1b visas 'till Oct 2006, so I am asked to work at the Dublin office.
When I analysed the locations they gave me in the beginning, the Dublin office scored just below the Mountain View office. The good things were: being closer to Latvia and being inside EU (no visas, easier to travel), and the bad things were: weather and Irish terrorism.
Well ... let's see what they'll offer me in the end and maybe I will go to the Dublin office and then in a year or two transfer to the new Moffet Field facility or to the Chinese office :D
UPD: I am told that my gut feeling about IRA being a threat in Dublin is very far from reality. I must find out more about this city.