Hi,
There's a new version of gsutil available, which you can get by running:
gsutil update
This version includes several bug fixes, and one big change: It now processes bucket listings/wildcards on the fly, instead of building a complete list of all matches before starting work. This makes gsutil cp, rm, ls, etc. capable of operating on an unlimited number of objects (where previously you'd run out of memory if you tried with too many matches), reduces memory footprint, and causes large operations to visibly begin making progress immediately.
Related to this, the gsutil mv command now performs each cp+rm operation one after the other; previously all cp's were performed, followed by all rm's. This means (a) if a large mv fails partway through you can restart without re-doing all the operations (since some objects will already have been moved), and (b) you don't need to have 2 copies of all objects in place before the orignal objects are removed (saving storage costs for the user).
Mike