Thanks for your thoughts, I am using CMD-F in the Finder, or global shortcut CMD-Option-Spacebar.
I have poured through my Console 'all messages' log, and the System.log. There are lots of messages and errors. I deleted some corrupt zip files, reindexed, Spotlight still not working.
I think there may be a bigger problem here that I'm not going to fix without a software update.
Here is my stripped down 'all messages' log, I've removed most of the dups [which is about 99% of the file]:
110807 3:22:21.431 PM sudo: ferdnerfer : TTY=ttys000 ; PWD=/Users/ferdnerfer ; USER=root ; COMMAND=/usr/bin/mdutil -E /
110807 3:26:55.946 PM sudo: ferdnerfer : TTY=ttys000 ; PWD=/Users/ferdnerfer ; USER=root ; COMMAND=/usr/bin/mdutil -i on /
110807 3:29:42.789 PM com.apple.launchd.peruser.504: (com.apple.mdworker.prescan.0) Throttling respawn: Will start in 5 seconds
110807 3:37:29.141 PM com.apple.mdworker.isolation.0: Incorrect start/end range ordering; fixing.
110807 3:37:39.008 PM com.apple.mdworker.isolation.0: invalid stream length 2200; should be 2202.
110807 3:37:39.008 PM com.apple.mdworker.isolation.0: FlateDecode: decoding error: invalid bit length repeat.
110807 3:38:08.230 PM com.apple.mdworker.isolation.0: invalid stream length 3857; should be 4096.
110807 3:38:26.941 PM com.apple.mdworker.isolation.0: invalid `Widths' entry in font dictionary.
110807 3:38:40.815 PM com.apple.mdworker.isolation.0: Range {0x0000, 0xFFFF} is not 1-dimensional; handling as a special case.
110807 3:38:43.439 PM com.apple.mdworker.isolation.0: Incorrect start/end range ordering; fixing.
110807 3:39:09.206 PM com.apple.mdworker.isolation.0: invalid `Widths' entry in font dictionary.
110807 3:39:14.737 PM com.apple.mdworker.isolation.0: FlateDecode: decoding error.
110807 3:41:35.328 PM mdworker32: kCGErrorFailure: Set a breakpoint @ CGErrorBreakpoint() to catch errors as they are logged.
110807 3:42:07.137 PM com.apple.mdworker.isolation.0: ASCII85Decode: invalid character 0x78 encountered in stream.
110807 3:47:16.746 PM com.apple.mdworker.isolation.0: Range {0x0000, 0xFFFF} is not 1-dimensional; handling as a special case.
110807 3:48:14.281 PM com.apple.mdworker.pool.0: PSSniffer error: Invalid argument
110807 3:49:47.731 PM com.apple.mdworker.pool.0: ImageIO: <ERROR> JPEG Warning: unknown JFIF revision number 2.01
110807 3:49:56.392 PM com.apple.mdworker.isolation.0: syntax error, unexpected DICTSTART.
110807 3:49:56.392 PM com.apple.mdworker.isolation.0: failed to parse embedded CMap.
110807 3:49:58.446 PM com.apple.mdworker.isolation.0: FlateDecode: decoding error.
110807 3:50:07.272 PM com.apple.mdworker.isolation.0: invalid `Widths' entry in font dictionary.
110807 3:50:13.920 PM com.apple.mdworker.isolation.0: Range {0x0000, 0xFFFF} is not 1-dimensional; handling as a special case.
110807 3:57:45.274 PM com.apple.mdworker.isolation.0: invalid stream length 10461; should be 10460.
110807 3:57:45.951 PM com.apple.mdworker.isolation.0: LZW decode: encountered unexpected EOF.
110807 3:58:54.094 PM com.apple.mdworker.isolation.0: Converting string with language tags....
110807 3:59:16.763 PM com.apple.mdworker.isolation.0: LZW decode: invalid chain sequence.
110807 4:00:14.298 PM com.apple.mdworker.isolation.0: invalid function: not a dictionary or stream.
110807 4:00:14.298 PM com.apple.mdworker.isolation.0: invalid image `ColorSpace' value.
110807 4:03:35.694 PM mdworker: iCal.mdimporter: could not find component keys: /Users/ben/Library/Application Support/iCal/Sources/0FFB3DD5-2A6A-42DB-A195-77448C337155.calendar/corestorage. ics
110807 4:03:35.721 PM mdworker: iCal.mdimporter: could not find component keys: /Users/ben/Library/Application Support/iCal/Sources/2B835489-C867-4DBB-9AFC-5986AA3F58F4.calendar/corestorage. ics
110807 4:05:05.089 PM com.apple.mdworker.pool.0: line 67,0: expecting "END", found 'X-WR-OCCTRIGGER' as token type 48
110807 4:05:05.090 PM mdworker: Component boundaries mismatch (VEVENT VALARM)
110807 4:05:05.090 PM mdworker: Component boundaries mismatch (VCALENDAR VEVENT)
110807 4:05:05.091 PM com.apple.mdworker.pool.0: line 96,0: expecting "END", found 'X-WR-OCCTRIGGER' as token type 48
110807 4:05:05.091 PM mdworker: Component boundaries mismatch (VEVENT VALARM)
110807 4:05:05.091 PM mdworker: Cal not a ICSCalendar *nil description*
110807 4:05:05.091 PM mdworker: iCal.mdimporter: could not parse ICS file: /Users/ferdnerfer/Desktop/_pending projects_/osx new computer, apple macbook, hardware, pro/osx mbp, new mbp setup/ical setup 10.6.4/$$$.ics
110807 4:20:55.483 PM mdworker32: kCGErrorFailure: Set a breakpoint @ CGErrorBreakpoint() to catch errors as they are logged.
110807 4:21:04.315 PM mdworker32: kCGErrorFailure: Set a breakpoint @ CGErrorBreakpoint() to catch errors as they are logged.
110807 4:21:15.112 PM com.apple.mdworker.isolation.0: failed to find PDF header: `%PDF' not found.
110807 4:21:30.989 PM com.apple.mdworker.isolation.0: Incorrect start/end range ordering; fixing.
110807 4:21:47.988 PM mdworker32: (Normal) Import: mdworker type 'org.openxmlformats.spreadsheetml.sheet' using 'file://localhost/Library/Spotlight/Microsoft%20Office.mdimporter/' exceeded time/resource use limits after 12001 milliseconds, reason:1 - find suspect file using: sudo mdutil -t 3654955
110807 4:21:54.175 PM mdworker32: kCGErrorFailure: Set a breakpoint @ CGErrorBreakpoint() to catch errors as they are logged.
110807 4:22:05.358 PM mdworker32: (Normal) Import: mdworker type 'org.openxmlformats.spreadsheetml.sheet' using 'file://localhost/Library/Spotlight/Microsoft%20Office.mdimporter/' exceeded time/resource use limits after 12001 milliseconds, reason:1 - find suspect file using: sudo mdutil -t 3654955
110807 4:22:12.265 PM mdworker32: kCGErrorFailure: Set a breakpoint @ CGErrorBreakpoint() to catch errors as they are logged.
110807 4:25:21.898 PM mdworker: iCal.mdimporter: could not parse ICS file: /Applications/Microsoft Office 2011/Office/OutlookCore.framework/Versions/14/Resources/en.lproj/Timezones.ics
110807 4:25:24.417 PM mdworker32: kCGErrorFailure: Set a breakpoint @ CGErrorBreakpoint() to catch errors as they are logged.
110807 4:26:47.300 PM com.apple.mdworker.isolation.0: syntax error, unexpected DICTSTART.
110807 4:26:47.300 PM com.apple.mdworker.isolation.0: failed to parse embedded CMap.
110807 4:27:30.439 PM mdworker32: kCGErrorFailure: Set a breakpoint @ CGErrorBreakpoint() to catch errors as they are logged.
110807 4:27:34.449 PM com.apple.mdworker.isolation.0: unsupported security handler `EBX_HANDLER'.
110807 4:27:34.494 PM com.apple.mdworker.isolation.0: FlateDecode: decoding error: incorrect header check.
110807 4:27:34.512 PM com.apple.mdworker.isolation.0: FlateDecode: decoding error: unknown compression method.
110807 4:28:10.163 PM com.apple.mdworker.isolation.0: syntax error, unexpected DICTSTART.
110807 4:28:10.163 PM com.apple.mdworker.isolation.0: failed to parse embedded CMap.
110807 4:28:10.164 PM com.apple.mdworker.isolation.0: *** process 1721 exceeded 500 log message per second limit - remaining messages this second discarded ***
110807 4:28:51.331 PM com.apple.mdworker.isolation.0: syntax error, unexpected DICTSTART.
110807 4:29:13.638 PM mdworker: iCal.mdimporter: could not parse ICS file: /Applications/Microsoft Office 2008/Office/EntourageCore.framework/Versions/12/Resources/en.lproj/Timezones.ic s
110807 4:32:35.017 PM com.apple.mdworker.isolation.0: Incorrect start/end range ordering; fixing.
110807 4:48:38.319 PM mdworker: *** Failed to decode 8bit data, treating as binary
110807 4:48:55.560 PM com.apple.mdworker.pool.0: I/O error : encoder error
110807 4:49:39.888 PM com.apple.mdworker.pool.0: I/O
110807 4:49:39.888 PM com.apple.mdworker.pool.0: error :
110807 5:10:05.673 PM com.apple.mdworker.pool.0: ImageIO: <ERROR> readICCData Embedded profile header length is greater than data length.
110807 5:10:11.912 PM mdworker32: kCGErrorFailure: Set a breakpoint @ CGErrorBreakpoint() to catch errors as they are logged.
110807 5:10:16.317 PM com.apple.mdworker.isolation.0: invalid stream length 144240; should be 144074.
110807 5:10:16.332 PM com.apple.mdworker.isolation.0: invalid stream length 417097; should be 416928.
110807 5:10:16.332 PM com.apple.mdworker.isolation.0: invalid stream length 13770; should be 13603.
110807 5:10:16.333 PM com.apple.mdworker.isolation.0: invalid stream length 36097; should be 35930.
110807 5:10:16.334 PM com.apple.mdworker.isolation.0: invalid stream length 66108; should be 65941.
110807 5:10:16.334 PM com.apple.mdworker.isolation.0: invalid stream length 34431; should be 34264.
110807 5:10:16.336 PM com.apple.mdworker.isolation.0: invalid stream length 85290; should be 85123.
110807 5:10:16.338 PM com.apple.mdworker.isolation.0: invalid stream length 125821; should be 125653.
110807 5:10:16.341 PM com.apple.mdworker.isolation.0: invalid stream length 151798; should be 151630.
110807 5:10:27.134 PM com.apple.mdworker.isolation.0: Incorrect start/end range ordering; fixing.
110807 5:10:34.411 PM com.apple.mdworker.isolation.0: failed to find PDF header: `%PDF' not found.
110807 5:11:23.078 PM sandboxd: ([33]) mds(33) deny file-write-create /private/var/folders/zz/zyxvpxvq6csfxvn_n0000000000000/T
110807 5:11:32.651 PM sandboxd: ([33]) mds(33) deny file-write-create /private/var/folders/zz/zyxvpxvq6csfxvn_n0000000000000/T
110807 5:11:33.686 PM sandboxd: ([33]) mds(33) deny file-write-create /private/var/folders/zz/zyxvpxvq6csfxvn_n0000000000000/T
110807 5:11:34.842 PM sandboxd: ([33]) mds(33) deny file-write-create /private/var/folders/zz/zyxvpxvq6csfxvn_n0000000000000/T
110807 5:12:10.724 PM mdworker32: kCGErrorFailure: Set a breakpoint @ CGErrorBreakpoint() to catch errors as they are logged.
110807 5:13:32.326 PM com.apple.mdworker.isolation.0: FlateDecode: decoding error.
110807 5:18:11.465 PM sandboxd: ([33]) mds(33) deny file-write-create /private/var/folders/zz/zyxvpxvq6csfxvn_n0000000000000/T