W2K Server has a built-in 'Index' function that allows to index
network-based documents and then run "free-form text" search using its
API. While very fast, this service by default is only available to
either Domain or Local Administrators on W2K server. I researched MS
site as well as Help but could not find the explicit explanation of
how to make this service available to other users. I am sure it can be
done through local policies, but I do not know what type of entry in
the registry is required to make it happen. There are numerous
references on MSDN, but the majority of them relate to API and other
development functions in conjunction with the Indexing Service. I will
appreciate the comprehensive step-by-step instructions on how to get
it setup without involving programming techniques and modifications.

I would set up web services instead. Using the Microsoft examples at 
http://www.microsoft.com/NTServer/techresources/webserv/IndxServ.asp,
users could browse to http://servername/searchpage.htm and retrieve a
list of files found. Results are already based on user credentials, so
if they don't have access, they won't see results (ntfs only).
Further, you can specifically exclude wildcard and predefined
files/directories from showing up in the results.

Cheers,
Dave

Thank you for your response. Due to security regulations, we can not
have IIS in our environment. That is why I am trying to leverage the
Indexing Service in its "native format" - it works great for a local
asministrator account.