Switching in new gyp version (which changes 'none' back to how it was before)...

google_update/google_update.gyp

 # Copyright (c) 2009 The Chromium Authors. All rights reserved.
 # Use of this source code is governed by a BSD-style license that can be
 # found in the LICENSE file.
 
 {
   'includes': [
     '../build/common.gypi',
   ],
   'targets': [
     {
       'target_name': 'google_update',
+      'type': 'none',
       'msvs_guid': '4052059A-D72B-4183-B5C2-9D1B099E9E35',
       'sources': [
         'google_update_idl.idl',
         '<(INTERMEDIATE_DIR)/google_update_idl_i.c',
         '<(INTERMEDIATE_DIR)/google_update_idl_p.c',
       ],
       'direct_dependent_settings': {
         'include_dirs': [
           # Bit of a hack to work around the built in vstudio rule.
           '<(INTERMEDIATE_DIR)/../google_update',
         ],
       },
-      'conditions': [
-        ['OS=="win"', {
-          'type': 'utility',
-        },{
-          'type': 'none',
-        }],
-      ],
     },
   ],
 }