My python version is 2.4.3. That could be the problem.

Yes, that's the problem. You'll need to upgrade to Python 2.5 or higher to get tool search.
 
BTW, where is "panel/frame"? I did not find it.

The main Galaxy interface has three iframe HTML objects: the tools menu, the history, and the workspace (middle frame). In Galaxy, we refer to these as panels; because each iframe has different source code and Javascript, you often have to look in a particular frame to find Javascript issues. 

That said, I'm confident that your problem is your Python version.

Thanks,
J.