I'm glad I got dasBlog fixed in time to blog about Google Desktop. Trust me, if you ever have looked for something on your hard drive or in your email, you want it. It is freaking awesome! I saw a video demo of the new MSN search which is identical in purpose, but it appears they've been beaten to the punch.
Scott Hanselman has some good observations on how it works.
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Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in anyway.