I'm using version 3.0. I'm still in the process of developing the site so I don't have a live site to provide to you. I can try to reproduce the problem in your demo store, but I'll need an admin login so that I can change the setting. Currently, when I search the Jewelry demo, it does not search in the descriptions.
I'm using the Instant Search plugin and it works great except that it doesn't search in the product descriptions even when the option is selected on the admin page. Searching the descriptions works on the advanced search page (when selected), but I assume that the setting on the plugin is to allow the search box to ALWAYS search product descriptions. Is this assumption incorrect? Is there some other setting I need to apply?