yeah...!! Google is using AJAX to display the results as you type, and to speed up the process, When the Google search page loads, Google sets up the environment in advance, like creating the XMLHTTPRequest object, creating an empty div in the page for displaying suggestions. Here the X and Y coordinates and width of the search box are calculated and using these, div’s top, left, width style coordinates are set so that suggestions layer displays appropriately in alignment with search box.
I'm really curious to see if this is going to be good or bad for the majority of us. On one hand I can see how this could hurt people using long tail keywords but then I can see this being extremely helpful for anyone targeting very short keywords.
Google has been innovating its search technology into Google Instant Search due to the looming merger of leading search engine competitors that can give them stiff competition in the near future. Read an article about this here: