The screenshots are watermarked - they look impressive, the look n' feel is like any other Windows program.
There is no mention of the Release date but people are speculating end of this year. According to this article at ZDNet, Microsoft has confirmed that we will see "some good MSN search technology in this calendar year, probably late the second half".
When you first install the MSN Toolbar Suite, the installation wizard configures MSN Toolbar in Outlook, Internet Explorer, Windows Explorer and then the MSN Deskbar. MSN's new Toolbar integrates directly throughout the OS and varies according to where you're searching from. For example, if you're searching from within Windows Explorer you will search on your PC, in IE on the web and in Outlook the toolbar searches within Outlook. You have the option to search on the web/desktop throughout any of the searches. Once the installation wizard has completed you're greeted with the MSN Deskbar. The MSN Deskbar resides along the Taskbar much like minimising Windows Media Player. Clicking on the Deskbar brings up an interface for searching and simply inputting characters into the text box immediately starts the Desktop Search. If the Desktop Search hasn't had enough time to index your files it will alert you and you can change the settings of what and where it is searching.
See full size screenshots of MSN Desktop Search here.