I can figure out how to create a search results page using views in Drupal 7. What I cannot solve is how to format it the same way as a search results page with two lines of summary text and the keyword(s) in bold. Do I have to use the "fields" display?
Yes you need to use fields. One for the title, one for the teaser and any additional fields you want to add in. You can configure the amount of text that appears in the teaser so you can get your two lines of text.