Read at [1]
What information does Google receive?
By default, Google Desktop Search collects a limited amount of non-personal information from your computer and sends it to Google. This includes summary information, such as the number of searches you do and the time it takes for you to see your results, and application reports we\’ll use to make the program better. You can opt out of sending this information during the installation process or from the application preferences at any time.
Personally identifying information, such as your name or address, will not be sent to Google without your explicit permission.
The last paragraph seems the tricky one. From reading that sentence it looks as if Google has access or is able to access or/and collect address information on your computer. The term \”without your explicit permission\” looks like the enduser is only a click away from letting Google effectively use that information. We will probably see/read more in the blogosphere sooner or later. 😉
Update: http://www.kso.co.uk/de/blog/2004/2004.10.18.html has just another view of the circumstances; on an OS that only pretends security, there is nothing really protected.
[1] http://desktop.google.com/privacypolicy.html
