WinFS is (more or less) dead, it has been announced on their official web blog: http://blogs.msdn.com/winfs/archive/2006/06/23/644706.aspx
Some useful parts go to SQL Server development branch. Reminds me of Cairo (early 90-ties), MSFT never achived that task. Only some parts were integrated as ActiveDirectory in Win2k and improved OLE in Win 9x/NT.
The Vista search seems to be very same technology as it has been shipped with WinNT 5.0+ (but deactivated by default). Just a new frontend has been added which looks more confusing than the WinXP variant.
The channel9 videos featuring WinFS looks promising, although I heard (from beta1 testers) the technology was not .