Brian
System Restore is always an option here, but it your problem may be caused by a corrupted file in the location you specified and System Restore may not help - it only restores system files.
If you ask Search to find a file in, say C:\Windows does it still freeze?
You could consider reinstalling Search .....
Login to Windows as Administrator - as you have Windows XP Home, this has to be done in the Safe Mode....
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To use the F8 key to start Windows XP in Safe mode
Restart the computer.
Some computers have a progress bar that refers to the word BIOS. Others may not let you know what is happening.
As soon as the BIOS loads, begin tapping the F8 key on your keyboard. Do so until the Windows Advanced Options menu appears.
If you begin tapping the F8 key too soon, some computers display a "keyboard error" message. If this happens, restart the computer and try again.
Using the arrow keys on the keyboard, select Safe mode and then press Enter.
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Highlight > right-click the following line and select Copy:
%systemroot%\inf
Go Start > Run and paste in the line above > Enter.
Find
Srchasst.inf > right-click on it and select Install.
You may need your XP CD, but I think not.
If all the above fail download
AgentRansack - this is a freeware search engine - I use the Pro Version and both are vastly superior to the Windows Search. See if that works OK for you.