i dont think google would lower 1 ip address rank otherwise it would exclude too much good content. Maybe if that spammers site linked to others on the ip as well it might be an indicator.
Bearing in mind one server can host tens of thousands of websites, one gigabit connections could offer hundreds of thousands of websites on just one ip address.
Searching on MSN will only return other sites it has in its index, not any that have been dropped for blatent spam so your little trick wont work. What you need to do is a thing called "reverse ip lookup" which will list all websites hosted on that server or ip address.
Hope that helps a little more
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