Spoke too soon.
This does not work. I tried true and false, the result is always the same, no copying of text into find panel.
// If true, the selected text will be copied into the find panel when it's
I am on Lion.
*Edit: **Nevermind, it worked when I put it in the *user file settings. It doesn't work when in the default settings file. I think it was set true by default in the default file, but it was being ignored until placed in the user file.