If you head over to the MSN Search website you will see that it has been updated. Microsoft said they would be doing this, so it comes as no suprise.
I did a few test searches to see how good the engine was. A search for "google" listed the Google search engine as the first entry. Similarly, a search for "yahoo" produced a first entry result for Yahoo! Finally, "hexus" returned this very website, as you'd expect. This is a promising start, although I doubt that my test regime is really stretching MSN Search a great deal
Microsoft has a list of improvements here.