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You can drop a folder to search onto the "Source" list. The item on the top is set as a default target.

For example, you can search only "Documents" folder by doing like this:
  1. Drag Documents folder from Finder to the Source list and drop onto it.
  2. "Documents" folder icon is created in the list. Select this icon then start search.
  3. If you always want to search Documents folder, drag the icon to the top row in the Source list.
You can also add smart folders to the Source list. Also you can add groups to search multiple locations.

Folders and files are added as Finder aliases to the Source list. When an original item is deleted in Finder, the corresponding item in the source list turns to "missing."

You can also add TagBot tag in the source list. Drag & drop a Finder item or a search result row onto TagBot tag in the source list to add the tag to that item.
TagBot tagging feature is unofficial. For TagBot, see... http://bigrobotsoftware.com/

Search history is automatically added to History group. If you want to keep your favorite search, drag it out of History group.