Privacy.... don't be funny... you are using Google

Google Desktop 3 contains a feature called "Search Across Computers" that, according to the search giant, enables users to search their documents and view Web pages across all of their computers.

While previous versions of the desktop search application indexed files stored on a person's computer(is it? who knows?), the beta version of Desktop 3 copies files to Google's computers. This permits the data indexed on one computer to be searched by a second system.

Users can limit the automatic transfers by changing the settings in the application's preferences.

Although Google said it stores the personal information for only 30 days and deletes the files if unused(believe them...), privacy experts are up in arms over the potential for abuse.

"It's shocking Google expects it will be allowed to store consumers' files on its servers," Kevin Bankston, staff attorney with the Electronic Frontier Foundation, told internetnews.com.

The new feature is "one-stop shopping for hackers if they get hold of your password," he added.

“If you use the Search Across Computers feature and don’t configure Google Desktop very carefully—and most people won’t—Google will have copies of your tax returns, love letters, business records, financial and medical files, and whatever other text-based documents the Desktop software can index. The government could then demand these personal files with only a subpoena rather than the search warrant it would need to seize the same things from your home or business, and in many cases you wouldn’t even be notified in time to challenge it.

We already have examples of Government asking privacy information from search engines.
"Google was asked for information on the types of query submitted over a week, and the websites included in its index". Yahoo! already submitted everything the government asked for. And this dispute is not over yet.