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Here's the latest on their Google Desktop Search (GDS):

Google's tool downloads and installs itself in no time at all, and lets you generally select the types of files you want to include. GDS then sets out to build an index of your entire electronic existence.

GDS stores its painfully complete index in one convenient location on your hard drive with no encryption or password protection--a hacker's and worm writer's dream come true.

"[GDS] puts the index of your data in a well-known place on your hard drive," says Stephen Green, principal investigator of the Advanced Search Technologies Group at Sun Microsystems. "It's only a matter of time before there is a spyware application or a worm that sends your Google index to a site somewhere."
(via PC World)

I've got to use IE, so I'm already living one security nightmare. I certainly don't need another. What were these guys thinking. Were they thinking?