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Same problem with IE8, Firefox and Opera, and with default theme too.
PHP 5.3.1
MySQL version 5.0.90-community
Apache version 2.2.14
At localhost ( AppServ ) working fine with PHP 5.2.6 and MySQL 5.0.51b.
The only change that made search working fine is changing the charset in theme.html from windows-1256 to utf-8, so it is look like the server not accept my windows-1256.