The latest Xbox Live includes the long-awaited search feature for the Netflix app. You'll have to go through the Xbox update and also update the Netflix app, but it only takes a few minutes for both. Search works a bit differently than I expected, and when you click on the letters across the top you're spelling the search term, no seeing all of the movies that start with the letter.
Major Nelson also reports that it includes some really interesting new features including ESPN3 sporting events, easier network settings, and "Family Programming" parental controls.
Thanks to FearNo1 for sending this in.