Just got my Droid today. Was trying to drag the Google toolbar at the top of the home screen, down to the bottom, and before I knew what happened, it turned red and disappeared. I searched through the phone and the manual, and I've searched different word combinations here on this site to see if I can get a hit on this, but I have not gotten any helpful results.
I have the same problem and I followed the instructions to the letter - HOWEVER when the search bar populated on the home screen, it was clear and had no microphone. When I touch it all it does is beep at me - it has no function.