Hi Matt,
I was able to replicate the "more than 100 items at this level" part, it turns out this is a feature to keep everything running smoothly in Internet Explorer. However the search functionality works fine for me, can you tell me the exact version you are using? perhaps an upgrade to a newer version of 1.1 (or even 2.2) would fix this.
Another possibility is that the wrong framework is selected in the drop down next to the search input box.
Hope this helps
David