The short video below shows how to geotag photos within Picasa Web Albums. To see how to geotag within the Picasa Desktop Application, see what's on Google's Support Pages here or here.
The video below starts on the picture's page. In order for you to be able to see the "Add location" option, you need to be logged into your Google account, and the photo either needs to be in your own Web Album or it needs to be a photo that you've uploaded to someone else's Web Album after receiving an invitation from the album owner.
There are great designs for Web Album available for free. Check out the link and see nice designs. You'll be amazed.
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