Hello Mitch,
you're right. The gadget's malfunction is caused by the absence of configW7.xml. If the file is still there for IE, it also is there for the gadget. It has already been there in January and kept the gadget working until now. You can find your local
copy of configW7.xml under
%localappdata%\Microsoft\Windows\Temporary Internet Files
Please don't confuse configW7.xml and config.xml. As long as configW7.xml is locally present, everything is fine. Your gadget keeps working because configW7.xml gets converted into config.xml on a regular basis, at least on every startup. This way the date
modified of config.xml is kept recent. All repair of the weather gadget is about keeping config.xml recent. You can do this by copying the file from another drive, which is why sting251's fix works. You can do it by opening the file and saving without
changes, which renews the date modified (also feasible by creating an automatic task). Or you can do it by setting the date modified to the future. Replacing the file by a prepared one also works. What's totally irrelevant and does no further fixing to anything
is setting the file to read-only. That's only Anders' favorite conspiracy theory.
Bottom line is: The file's date modified mustn't fall more than 72 hours behind present. A config.xml with a date modified older than 72 hours equals "no configuration file at all" to the gadget, meaning case 404 - "cannot connect to service".
So, take good care of your configW7.xml and don't delete Temporary Internet Files anytime soon.
Also, all of those fixes (after all, it's only one) don't have any influence on the search mode. Something is irreversibly wrong there, and not by update. You'll find the situation on every fresh installation of Windows 7. For the search to work correctly,
it used to be required and sufficient that the gadget is running normally. Obviously, it is still required, but not sufficient anymore. And, as I said, the removal of configW7.xml from the web has not been announced or even mentioned by any Microsoft official.
In 2013, this happed by accident and got fixed within a few days, so that many may not even have realized it. This time, it's by intention and permanent, and over time inevitable to hit each and every gadget.
Regards, VZ