It's just as memorable as google was on it's first day. A little branding and constantly improving results could make it a player. But, only time will tell. I'm cheering for them.
I looked at the word and my first thought was "how do you say that" - you don't win people over by making them feel stupid.
I think Cuil is a decent name, far better than Srchr or some other Web 2.0 contraction. If it overcomes its growing pains and solves all the hard problems involved in search, it'll do well.