Recent news to spread across the blog-wire is that Picsearch announces collaboration with MSN. Picsearch and its "Psbot" crawls the Web to find images to include in its index. Picsearch powers several engines including Ask Jeeves and Lycos Europe, so MSN is a major contract for them. I actually had someone meet with me that wanted me to build an engine that competed with Picsearch, funny.
A thread is currently at Search Engine Watch Forums and Gary Price blogged on it at the Search Engine Watch Blog.