Is the Market Search History annoying you? It has annoyed tons of people and up until now there was no way to delete it!! You will love me for finding this!
I have found an app that will delete it easily and it actually works!!
It is called HistoryEraser and is a FREE app in the Market. Just do a search for "HistoryEraser".
WARNING: DO NOT download MarketHistoryEraser. It is for 1.5 users only. Make sure the one you are downloading is HistoryEraser.
You can check out the page on AppBrain here: HistoryEraser - Android app on AppBrain
Also please make sure you dont go into the contacts section. I wouldn't want any of you deleting your contacts!
You can find the section to clear market history under the Google apps [beta] section within the app.