Sorry about that, you are quite right - I had assumed that a feature as basic as searching file contents would be a part of Windows 7. It seems that Windows 7 does not search through the contents of log files, as well as many other text file types, by default. You have to make changes in the Control Panel to the "Folder Options" and "Indexing Options" settings. I have been testing this out and even after making those changes, the search feature still seems unreliable for me - it appears to use a kind of word match as opposed to a text match. Even so, I did not expect mIRC users to have to change Windows 7 settings just to be able to search through log files.
I am not too happy with the old View Logs folder in mIRC so if I add it back I will have to make some changes to it to make it simpler and clearer. In the mean time there are some really great search applications out there such as
Agent Ransack which even adds a "Search" item to the Windows Explorer right-click menu for folders.