The reason it didn’t work is that Google introduced it’s own OpenID discovery protocol as they faced challenges not addressed by the current version (2.0) of the OpenID standard. And this means such OpenIDs are not recognized by current OpenID libraries. For this reason, Google provides with php-openid-apps-discovery an add-on to the PHP OpenID library.
I integrated this add-on into the OpenID component as an optional feature. You have to enable it with:
public $components = array('Openid' => array('accept_google_apps' => true));
I made it an optional feature because it introduces an additional step to the authentication process: the provided OpenID url is sent to Google to figure out whether it is a Google Apps OpenID. And this makes the authentication process a bit slower. Hence I think you should have a choice whether you want to use this feature.
The new version of the OpenID component doesn’t contain any other new features/bugfixes.
You can download the component from Github.