Google has beaten Microsoft to the punch by launching a desktop application for searching through personal files on the PC as well as Web history usage. There are many implications of such an application, that affects search and privacy issues. There is an excellent article at http://news.zdnet.com/2100-9588_22-5408765.html that details all of the new features and implications of this tool. I have not yet tried it, but I will report back my thoughts once I have tested it for a while. Download the Google desktop search application to test it for yourself.