Edited to include code that actually works–still having the same problem, ‘depth’ does nothing…
<form method=”get” id=”searchform” action=”<?php bloginfo(‘url’); ?>/”>
<label class=”hidden” for=”s”><?php _e(‘Search for:’); ?></label>
<div><input type=”text” value=”<?php the_search_query(); ?>” name=”s” id=”s” />
<?php wp_dropdown_categories(‘depth=1&hierarchal=true&exclude=1,42,147,174&hide_empty=1&show_option_all=Entire Site’); ?>
<input type=”submit” id=”searchsubmit” value=”Search” />
</div>
</form>