Well, it seems I had to uninstall the existing Google Desktop first before installing the latest version.Make sure you do this, seems the new features are not activated without this step. Otherwise, you still get the old version.
The best feature in my opinion is the Lock Search feature. You can lock down Google Desktop with your Windows password. Although, I would have liked it if I can assign a unique password to it.
Check out the complete features of this cool app (if you're not paranoid) right here.
