I use Windows Explorer search box (with no trimmings) as command line for searching inside my desktop.
Webwise, standard google search box still returns best search and find outcomes. There is no real reason why you should want a google desktop as well (or, webwise, google toolbars for that matter). If I want to take google further than a websearch command line, I find igoogle to be a suitable enough desktop. I can run Picassa from within igoogle, with both XP desktop and web albums showing. I've used google docs since the start and now hold a regular used archive there, but works as a standalone resource, unrelated outside of access from igoogle. Also, my ISP in the US seems to be google friendly.