If you conduct a search in Google Images for [Michelle Obama] you will see a racist image in the number one result. The image is hosted on buzzoverm.blogspot.com and here is a copy of the search result:

Someone reported this at a Google Web Search Help thread, but no Googler has responded as of yet.

I assume after Google sees this post, it will be removed soon.

Forum discussion at Google Web Search Help.

Update: Google Buys Add For Offensive Michelle Obama Image Result.