In the latest version of the Google toolbar (2.+ go toolbar.google.com to
download) click the Google button and select the Options menu. On the
Options tab un-check the Drop-down search history checkbox.
I think in earlier versions there is a preferences menu option (click the
Google button to display) which will take you to a web page where you can
change these settings.
The following registry key holds the values for the Google Search MRU
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