The following code inserts a link for extended search into the headers top link navigation
<reference name="top.links"> <action method="addLink"> <label>Advanced Search</label> <url>catalogsearch/advanced</url> <title>Advanced Search</title> <prepare>false</prepare> <urlParams></urlParams> <position>6</position> </action> </reference>
It is really important, that all sub elements of the action tag are in the exact this order as the corresponding parameters of the underlaying method Mage_Page_Block_Template_Links:: addlink.
If storecodes are used, you have to set the prepare node to true or 1. It generates correct URLs!