Google’s sea change was announced today in the form of Google Instant, interesting challenges for SEO lie ahead, I’ve tried the new system, in a nut shell it’s fast predictive search, looks at bit messy to be honest, however it’s Google and in time it will feel like second nature. For SEO I don’t think it will make much difference (then again I could be completely wrong here), results are still based on keywords predicted or not. One thing I did notice is the ‘I’m feeling lucky’ tab is far more prominent, not sure how Google judges who should be the lucky ones to receive that traffic. At Blueclaw we’ll play around with Google Instant and report back. What’s your opinion on Google Instant?
For more info on Google Instant check: http://www.bbc.co.uk/news/technology-11231878
Lord Cutts on Instant - http://www.mattcutts.com/blog/thoughts-on-google-instant/

Quick tip for you, in regards to the i’m feeling lucky option, if you hit the down cursor to highlight the search you want from the predictions then the right cursor key it will take you there.
Doesn’t impress me to be honest, like you say is a little messy and I prefer to choose what keywords I search for, however I am an SEO the average user will probably wonder what the hell is going on and reboot their computer. It only works when you’re logged into your google account, so I am guessing it will have a similar impact to personalised search, not very much.
Thanks or your comments Tim, like your blog! One thought I’ve had is SEOers will need to study Google’s ‘prediction’ patterns when analysing possible keyword targets, it may become vital to optimise phrases that pop up within the ‘prediction’ as well as the intended keyphrase, more work for us then!
It helps in making keyword search faster and I like using it actually, just like what yahoo does for its search bar.