The picasa website also offfers a map, where you can see the pictures of your album. Unfortunatly the upload doesnt support geo tags. They are no more with the pictures on picasa website ;(
You have the same issue? Maybe fixed it...?
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It works for me. I just tried using the "Share" command to upload a geotagged photo from my Android phone to Picasa, and I can see the map on the Picasa website.
I am using an HTC Dream with Android 1.6