[sunfighter]

This line

document.getElementById('searchResults').innerHTML = http.responseText;

Found near the end of the liveSearch() function tells you where to put the http.responseText( what is echoed back from the php).

You need to make a div where you want the text to go, place it's id where you see searchResults. Maybe change

document.getElementById('searchResults').innerHTML='<li>Loading...</li>';

to just

document.getElementById('searchResults').innerHTML='Loading...';

Then go to the php and change this line

PHP Code:

$output .= '<li><img src='.$region .'> <a href="'. $editlink .'">' . $displayName . '</a></li>'; 


To:

PHP Code:

$output .= '<img src='.$region .'> <a href="'. $editlink .'">' . $displayName . '</a>';