Did some digging and found out:

The Indexing service already has everything they want to do with WinFS.

but

The Indexing service's implementation is _incredibly shitty_. I don't know if you remember, but I used to complain that the Search In Files was utter crap for XP (when it first came out). I noticed it wouldn't find text in c++ source files that was obviously there.

Turns out it can only search the file types that the indexing service comes equipped to handle by default, which is ONLY .doc, .html, .txt. and a couple others. It can't index (and thus can't search the contents of) .cpp files or .h or anything outside a few major Microsoft/internet formats.

http://support.microsoft.com/default.aspx?scid=KB;EN-US;309173 - Lame

And more to my anime problem..... It CANT INDEX .AVI OR .JPG FILES. They released this crap with no support anything and just prayed for some third party to come out and write filters for all the major filetypes so their POS indexing service would know how to catalog them. A google search shows a few scattered filters for random types (mp3, pdf, jpg), but I have to go around digging for filters, and running each of their gay ass proprietary installers just so... oh... say the FILENAME of that type, can be indexed. Yup, that's right. If a filter for a certain filetype doesn't exist, It won't index those files AT ALL, so even a filename query for those files turns up blank. I index one of my anime directories and only 5 of 5000 files get indexed... .and those 5 are random .htm and .db files sitting in there. Unbelievable!! The only way to get it to work, is to manually edit the registry to force .AVI files to use the Default Text filter, and hope to god it doesn't choke on the binary data (the MS website recommends this btw).

Service pack 1 is supposed to add support for a bunch more types, but it's still got that homoerotic limitation about skipping over files that it doesn't have a filter for. How shoddy. This isn't linux, its supposed work out of the damn box. WinFS is just redemption for this skid mark of a service.