Hey Brajesh, I actually figured it out! It was an issue with the theme search. I had to make a few changes, but nothing major.
Take a look...
Old Search...
<div class="search_main fr">
<form method="get" class="searchform" action="<?php echo home_url( '/' ); ?>" >
<input type="text" class="field" name="s" id="s" value="<?php esc_attr_e( 'Search...', 'woothemes' ); ?>" onfocus="if (this.value == '<?php esc_attr_e( 'Search...', 'woothemes' ); ?>') {this.value = '';}" onblur="if (this.value == '') {this.value = '<?php esc_attr_e( 'Search...', 'woothemes' ); ?>';}" />
<input type="image" src="<?php echo get_template_directory_uri(); ?>/images/search-btn.png" class="submit" name="submit" />
</form>
<div class="fix"></div>
</div>
New Search...
<div class="search_main fr">
<form action="<?php echo bp_search_form_action() ?>" method="post" id="search-form" class="searchform">
<input type="text" id="search-terms" name="search-terms" value="<?php esc_attr_e( 'Search...', 'woothemes' ); ?>" onfocus="if (this.value == '<?php esc_attr_e( 'Search...', 'woothemes' ); ?>') {this.value = '';}" onblur="if (this.value == '') {this.value = '<?php esc_attr_e( 'Search...', 'woothemes' ); ?>';}"/>
<?php echo bp_search_form_type_select() ?>
<input type="image" src="<?php echo get_template_directory_uri(); ?>/images/search-btn.png" class="submit" name="submit" />
<?php wp_nonce_field( 'bp_search_form' ) ?>
</form>
<div class="fix"></div>
</div>
It seems to me that the error was in the form, whether the action, method, id, I dont know. But after fooling around for the past couple days I was finally able to get something that worked.
Thanks for the unified search, glad I got it working on my own! I feel accomplished. :) haha.