Microsoft seems to be planning to roll out their full search tool in stages.

To begin with, they'll offer little more than a clone of Google or Yahoo using indexes generated from their own spidering, indexed and ordered according to their unique algorithm choices. I think it will be difficult for Microsoft to distinguish itself in this stage of their rollout. They do, however, have the advantage of being ISP to some broadband companies including Qwest and the advantage of a huge user-base of hotmail customers.

The more significant part of the rollout likely to happen only when the new Windows OS is released. With "Longhorn", they will offer personalized searches from a desktop tool. They'll still be using the indexes generated from their spidering, but the desktop tool will give them the ability to give a user highly customized results. That might be enough to move them to the head of pack.

But, of course, Google is rumored to be working on its own personalization strategies.