I put the word "foo" in the text input box between "Search:" and the pulldown that says "Current Folder". For people that seldom use this feature, it might not be obvious that one needs to press "Enter" to actually perform the search. It is also probably not intuitive that one can click on the binoculars icon to change how the search is performed. After I change the selection from "Subject or Sender contains" to "Recipients contain", I would assume that the search has been performed. It took me several frustrated searches to figure out that I also need to press "Enter" in the text box in order to actually perform the search. evolution-2.12.3-1.fc8
Moving this upstream for further discussion. Please see: http://bugzilla.gnome.org/show_bug.cgi?id=517258