Microsoft's challenge: 90 days to beat Google
mercurynews.com
mercurynews.com
I hope Microsoft finds/makes lots more small awesome groups to throw some money at.
I also think the big hole in search is recent relevancy. Some topics are temporal, and getting results that have been time vetted, as Google does, often means the information is obsolete. For example, I just searched "CakePHP vs CodeIgniter". The first result was published in March, 2007. That's ancient!
So if the search engines can get temporal searches improved, I would be much more impressed than I am with real time search.
They are able to grab the streams and create it into something more akin to a real-time news site, rather than just random tweets.
They're canadian, and us canadians don't often get the word out as well as US companies, which might be why you are not familiar with them. The tech is pretty amazing though.