Others are also seeing the issue, starting with Brian at The Faithful Skeptic, BlueFish, who notes the major hiccup, Nathan from Nerdflood, Mike from A Geek's Point of View, Josh Kim and Rachel of the Liminal Librarian.
How do I know all these folks were affected? Google Blog search, of course. Google strikes Google, I guess.
Whatever the updates are for Google Reader, assuming they ever get the site going again, better be damn good, or a lot of vocal people are going to be very pissed.