When I search for something in windows 7, it does not show me where it is looking. In windows XP, the search facility used to tell me where it was looking as it searched.
Is there any way to get windows 7 to do the same thing?
Unfortunately no, the level of available detail and options for file searching regressed significantly between windows XP and Vista/7. Most likely, current location is not shown for searches because by default Windows 7 is not performing a "real" search of the filesystem, but rather searching the Search Index. This article describes the process in more detail. Unfortunately, even if the Windows Search service is disabled, these details remain obscured.
If you are looking for a more XP-like search, My favorite alternative is Agent Ransack, which exposes many more options and does indicate where it is currently searching. It can also be made to replace the standard Windows Search function when ctrl+F is pressed.