Well here it is finally, the Google Desktop Search.

You download and install the desktop client, and suddenly a "Desktop" tab is integrated into google's search. It doesn't index every file type yet, but the main ones are there and I think more will come. The main missing one is probably PDF, which is strange since google already indexes PDFs on the web. Also, it only indexes IE's history which sucks Firefox users like me, but hopefully they'll improve Mozilla support soon.

Also, it doesnt seem possible to make a Mozilla bookmark which goes directly to Desktop seach, as it uses some kind of cryptic "s" value in the URL, which is tied to the actual request string (changing either manually gives an error). My guess is that it's some kind of hash value for security reasons - I have no idea what reasons, but I am quite curious...