Google has updated it's search engine, it now searches as you type and puts suggestions in the box in grey.
It is called Google Instant and was added today. It is currently only with web search but makes for faster searching as you don't have to click the search button or press enter anymore.
There is an option to turn off Instant search but it is on by default. It incorporates autocomplete which makes it faster to search. You can still press enter or click search to find something specific.
They have also added a clear button like on mobile devices. It is not yet available for mobile devices but will be in the future.
More information is at: Google instant
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