The Google toolbar can only be installed as a toolbar for Internet Explorer and/or Firefox, and as such, be located in the browser itself. At this time, that's the only option. The best thing I can suggest is check out the free Desktop Sidebar, which can give you instant access to Google, the weather, latest news stories, and more.
Hope this helps,
Is there a way to have the toolbar located in my system tray? I couldn't any thing on the Google site. Ideas anyone?