Hi M$,
There are two ways to do this. You can disable search entries from being saved in windows explorer permanently through group policy here:
User Configuration > Administrative Templates>Windows Components>Windows Explorer>turn off display of recent search entries in windows explorer
Or you can clear the saved search items when the list gets out of hand with the registry by deleting all the information under this key except for the "default" "value not set" value. New seach items will begin to be stored after this untill you choose delete the information again.
[HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\WordWheelQuery]
To simplify this task you can copy the text below to a text file and name it "clear_search.reg" or anything .reg and then click on the file and answer yes when it asks you about entering information to the registry:
Windows Registry Editor Version 5.00
[-HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\WordWheelQuery]
[HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\WordWheelQuery]