Kodak will include GPS in it's camera range starting in 2009. GPS (the Global Positioning System) shows you where you are in the world by checking with satellites orbiting above us.
The location information will be stored in the EXIF information of the image, and will be able to be retrieved using common software.
I have a feeling this feature will become very popular in future years as consumers discover the benefits of knowing where a photo was taken. Just think about it - no more "Was this photo taken on the Greek Islands, or Italy?". You'll know exactly where (and when) a photo was taken.
Location information embedded into photos isn't new though. Millions of photos on flickr are now tagged with the place they were taken. In fact, this data is used by FlickrVision to show a world map and photo slideshow.