Google announced yesterday that they would anonymize their server logs after a certain amount of time. This means that if I go and search Google for something potentially embarrassing like “Princess Leia Metal Bikini”, after 18-24 months, there would no way that anyone could associate that search with me. Personally, I’d like to see a slightly shorter time frame (or none at all) before my searches are anonymized for my privacy. I understand that without associating my searches with me, they lose a pretty important part of their business (targeted search ads), but 18-24 months seems like a very long time.
http://googleblog.blogspot.com/2007/03/taking-steps-to-further-improve-our.html

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