Ran into a problem with service pack branch of Sitecore not working.
Deep dive in code produced the error:
no segments* file found in Sitecore.Data.Indexing.FSDirectory@{etc}
Thanks to a quick google search, I found the fix on LearningSitecore's blog.
http://learningsitecore.blogspot.com/2010/10/no-segments-file-found-in.html
Works like a charm now.
Ohhh the little things.