We've heard this from Microsoft before. Quite recently, in fact. And we also know that one of Microsoft's biggest projects right now is to out-shine Google on their home turf. What exactly could Microsoft do better as a search engine opposed to Google? That's pretty subjective:

"The quality of our search and the relevance of our search from a solution perspective to the consumer will be more relevant," he told the Reuters Global Technology, Media and Telecoms Summit.
Considering how easily search engines can be abused and considering the loyalty that many have to using Google as a primary search engine, it's interesting to see how Microsoft plans to tackle Google, especially when MSN is already the "default" search for a new Windows machine. Rather than integration into Windows, they will be integrating it into programs that many people do use, like Windows Messenger. Search engines inside your IM - interesting stuff.