Hi Gregory, and a warm welcome to the forums! 🙂
It's an xml file with Aliases to a previous search criteria.
Selecting "Find..." from the Finder's "File" menu (or typing another user-configurable keyboard shortcut, command-option-space by default) brings up an "advanced" Spotlight search window that includes a field for a search string (treated like the same string typed into the Spotlight menu bar drop-down search field) and any number of additional search conditions.
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Any search performed in this window can be saved as a "smart folder." This "folder" is actually nothing more than a plain file with a ".savedSearch" file name extension. The file contains an XML serialization of the Spotlight query.
http://arstechnica.com/apple/reviews/2005/04/macosx-10-4.ars/9
One way you can delete it by going to the Finder>File>Find, click on a Saved Search, click the little Minus icon...
