It looks Google has rolled out a new tab/feature called auto targets. It looks like the feature leverages the Google Merchant Feed and allows you to create product sets and link them to ad groups, but as Matt Umbro points out  the help page appears to be a blank document:
Anyone have any more info here? If anyone has a write up drop it in the comments and we'll update the post with any links.
UPDATE: The feature doesn't appear to be that new after all :). Thanks to Chad Summerhill of PPC Prospector  for the link to Elizabeth Marsten's awesome in-depth walk through  on Portent's blog and for dropping in the help rollover info (for some reason that help menu never loaded for me):
Auto targets allow you to target your ads to search terms by specifying attributes that describe these search terms instead of providing keywords directly. Just like keywords, you can specify bids for these targets or use the ad group default bid.
For example, product targets allow you to trigger product listing ads for search terms related to products in your Google Merchant Center feed. You can use attributes from your feed to specify the set of products you want to target.
UPDATE #2: Jessica Cameron Ruud  offered up a link to a recent Google Blogspot announcement on the topic: http://adwords.blogspot.com/2009/11/announcing-product-listing-ads.html  as this appears to be part of the recent Product Listing Ads that have been rolled out to all. Here is a nice overview on that: http://www.google.com/ads/innovations/productlistingads.htm l.
Thanks to everyone who shared info on this on Twitter!