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You may first want to make sure that you don't have the search function turned off on your site. You can go to Settings>>General>>Store Settings. Under Store Display Features make sure that the box for "Hide search" is not turned off. If that's not the problem, maybe you don't have the right code.
The code I use is below (not sure what the generic code is). You can also check many of the frame files in the various folders under templates. You'll of course need to adjust the table/cell information, height, etc... depending on where you want to place it on your site. Mine happens to be in the left column.
I used (stole) your code to move my search box. One question: Is there a way to have the default text in the searchbox automatically go away when you click on it? E.G. It says "Enter keyword(s)...." and you have to delete that first manually before entering your own search term.
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