Magento: Popular Search Terms in Sidebar

Use the following Code In local.xml

As:

<layout version="0.1.0"><!-- everything goes in here -->
<default> <!-- this container tells you what your default layout is. like 'header' and 'footer' -->
    <reference name="right">
            <!-- Search Terms -->
            <block type="catalogsearch/term" after="cart.sidebar" name="catalogsearch.term" template="catalogsearch/term.phtml"/>
        </reference>
  </default>
</layout>