An algorithm that actually provides search terms which are properly related, At the end of the day a good search engine , which actually does what it says on the tin will be good enough to beat google providing their search is better.
I agree, MSN needs to improve the algorithm of their Search Engine. I'm afraid will have some bugs or error in algorithm because their search engine is operated by Microsoft unlike in Google Search Engine they're using Linux.
Like Riverwire said Bing should improve their algorithm especially the relevancy of keyword to the searching website. If Bing do that, of course it can beat the Google Search Engine.
Very difficult to say that but I think the searching feature must be updated like special search tool for images, blogs, etc.