Home and Search don't work on my Nexus One I'm using a beta of Cyanogenmod 7 and it seems unlikely they would leave out home and search button functionality. I tried rolling back to the RC and then getting the latest nightly and then wiping the data and cache and then getting the latest RC and nightly. But still, when I press Home or Search, the phone vibrates as if I pressed something but doesn't go home or bring up a search box.  Thankfully, "back" still works.

Is the hardware defective??
If the phone's registering the keypress and vibrating, I don't see how it could be a hardware issue.  Flash back to stock and see if it works.  Or at least CM6.