Google has done a significant upgrade of the mobile version of Google Reader, as well as the desktop version. I haven’t seen this written up anywhere yet (apologies if you wrote it up and I missed your post).

Look at the bottom of the screenshot above. There are new links for Tags, Subscriptions, Settings, Sign Out, More Google Products and Google Labs.

This is fantastic – previously Google Reader’s functionality on mobile devices was limited to viewing the 10 most recent posts in your feed.

Now you can change the number of posts displayed (5, 10, or 20) in the Settings, view your posts by Tag, view your Starred and Shared items (in the Tags page) and log into your other Google applications.

This has to be the strongest indication yet that the heavily rumoured gPhone is imminent. There is a bit of work to do on it – moving from the Google Reader to Google Calendar requires you to re-enter your Google account info, for example. This should be maintained across Google apps obviously. Other than that it seems to work flawlessy though.