Perhaps my template is a bit confusing ;-)
The search term is shown above the tag cloud (as if it were just another tag). Categories are not used in my template and the numbers below are the month calendar. No page numbers on found page...
See it here in my 1.6 test installation:
http://uhlig.at/pp16/index.php?x=found&quick=zebra
(not many matches since there are not many photos)
The quick search searches ONLY in title and description. No tags (since there is the tag cloud for that), no categories and no search in comments.
I can extend the Addon and set switches for where to search. But for a true "quick search" it is only with titles and description so far...