It seems both Google and Yahoo! provided interesting news on the personalized search front recently.
Yahoo! MyWeb 2.0 seems to merge the functionality of del.icio.us with the power of Yahoo! search. I can now add tags to my Yahoo! bookmarks, view cached versions of my bookmarked pages and perform searches restricted to the sites in my bookmark list. Even cooler is that I can share my bookmarks with members of my contact list or just make them public. The search feature also allows one to search sites restricted to those shared by others. All they need to do is provide an API and add RSS feeds for this to be a del.icio.us killer.
Google Personalized Search takes a different tack in personalizing search results. Google's approach involves tracking your search history and tracking what search results you cliked on. Then when next you perform searches, Google Personalized Search brings certain results closer to the top based on your search history or previous click behavior.
As for this week's news about MSN Search? Well you can catch what our CEO had to say about us in the ZDNet article Ballmer confident, but admits failings. We definitely have a lot of catching up to do but I don't think the race is over yet.