1) You need MOSS or Search Server to get the All Sites. WSS
Doesn't have it.

2) You need to assign a Search Center to each Site Collection to
get All Sites. This is in Site Settings, Search Settings.

Now that we're on the topic of search  sites, does anyone know how to do the
following:

* Default to 'This Site:' in the drop down for a given subsite? I have other
content sources and those show up by default and users always complain that
their searches return incorrect results because they don't first change the
search scope.
* Allow the selection of 'This Site:', 'This List:', All sites  or other subwebs
in the Advanced Search screen? Whenever you click on the Advanced Search button
it directly goes to the All Sites search and you have to navigate through the
hits in order to find your results by having a look at the URL.

There are other search topics that would be nice to configure (modifying the
search results page to show different data or even the document handling menu
(ie., edit properties, view containing doc lib, etc.) but these are a few pains
for my users.

you can edit the Web part properties of advanced search  and include search
scopes.

While you can edit web part properties to show scope  picker, the
contextual scopes like "This Site" and "This List" will not be there.
Only the custom scopes that you created and added to the "Advanced
Search" display group will be displayed in the scope list (unless you do
some heavy hand programming). As you can see when editing search  display
group, you will not see "This Site" and "This List" there since they are
dynamic scopes and will lose the context the moment you walked out of
that page or site.

Making "This Site" and "This List" the default can also be challenging
if you have included custom scopes in the scope dropdown  list. Whenever
the custom scopes are included, the default can only be one of the
custom scopes. But if you do not include any custom scopes, the default
will be the "This Site" or "This List" which is reasonable. I suspect it
will also be some programming and customization effort if you want to
make "This Site" to be the default with the presence of custom scopes in
the dropdown.

I just turned that on in my Test system and it only show All sites  as a
checkbox. Does this mean that I need to setup a search  Scope for each of the
sites in my site  Collection? I was hoping that any of the next sites I create
off of the top level site would be available just the same way they are in the
basic search at the top of each page within a site.