The word is that the Windows Live "desktop search" project has been shelved, as a result of the recent reorg. In Sinofsky's vision of "Live 2.0" (did I just say that?), the 6 groups rule all, giving consolidation into a Windows Live suite. The screenshot below is about as much as we will be seeing anytime soon of the ill-fated "Casino".
Live Drive is still yet to be seen, Nemo the Media Center add-on is on hold. While thankfully someone has seen sense to stop churning out Live-branded products everywhere we look, these non-core products are the ones that can differentiate Windows Live from Google and Yahoo. Hopefully we'll see them or their technology in other products in the near future.
Windows Search Preview homepage
