Interesting... http://search.msn.com is down, at least for me. That's not good for an SE. =) --edit-- that was quick, back up now.
It works for me. I have IE7 (not beta). it goes to http://www.live.com/?searchonly=true There's a little pseudo-bar (what would you call it?) at the top asking if I want to set my default search to Live Search. The results are OK. Eric