In a partnership with X1, Yahoo has decided to enter the desktop search marketplace, with its own branded X1 desktop search client. The news is spreading the Web, already found at ClickZ, Mercury News, ABC News, InternetNews and others. Danny Sullivan has an excellent write up on the story at his blog entry he named Yahoo Details Desktop Search Plans; Ask Jeeves & MSN Launch This Month, where he predicts the winner of the desktop search war will be the "Searchers".
Forum discussion currently at Search Engine Watch.