Microsoft has started its Google-killer at
http://beta.search.msn.com/
Indeed, in many respects, it is better than Google - 10 times as fast, for example. Besides the advantages, there seems to be one disadvantage: the ordering of the pages just does not seem as good as Google's. Giving the right importance to various pages is something that the Google guys have become very good at, and Microsoft will need more time to catch up, I think. However, when it's done, it's conceivable that Microsoft will take over. They should also choose a better URL.
But what I want to tell you primarily is that there is a great desktop version of Google. Download it from:
http://desktop.google.com/
It will need a couple of hours to make an index of your computer, but then you will be able to search through all your local files containing some text, using the usual Google interface! Recommended!