Remember that search behaves differently between MOSS 2007 & WSS 3.0. The biggest difference is, WSS will search within its site collection, i.e. it can’t crawl the entire farm or outside sites. MOSS on the other hand can crawl say the BDC, network share's, your company website, blogs. Basically, it can crawl just about anything.
Differences aside, here is how you setup search in SharePoint 2007.
1. Open up Central Administration
2. Click on Operations, and then Services on the Server

3. If you have more than one server in the farm click on the server drop down to choose the correct server.

4. Under Start services in the table below: start the Office SharePoint Server Search service.

- Click on Shared Services Administration or SSP.
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6. Click on Search settings under the Search section.

7. Under Search Settings click on Content sources and Crawl Schedules.

8. You will see a Local Office SharePoint Server sites.

9. Click on that link and setup a schedule for “Full Crawl” and “Incremental Crawl”. If you want to start a full crawl after you are done setting up this schedule check the box Start full crawl of this content source.

10. Next you can specify other search criteria like URL's for sites and public shares that you want to crawl. Remember that the crawl account must have read access to all sites and shares you want crawled.
You can also crawl everything under the hostname for each start address or just the SharePoint sites

11. Click ok and you are done. That’s it, you have configured search. Wait for the crawl to finish and go to your site and perform your first search; you should get results.