Note: And yes, I posted this before Slashdot!
They did it.
At long last, they did it.
The crazy cool bastards did it.
Free Google Search for your desktop data at desktop.google.com
It's indexing my laptop now.
I already used it to find a document I was looking for.
Now, in they'll just add support for Thunderbird e-mail, I'll be happy as a clam!
From the FAQ:
With Google Desktop Search, you can search the full text of your email, files, viewed web pages, and chats
We treat your privacy with the utmost respect. The Google Desktop Search program does not make your computer's content accessible to Google or anyone else.