Previously, quite a few times now, I've blogged about my woes with geo-tagging photos and getting them uploaded to Picasaweb with geo data in tact.
Well with Picasa 3.05 on OSX, importing recognises the geo-tag, and, sound of trumpets blowing... uploads intact to Picasaweb!
It looks to me like the little cross-hairs symbol in the lower right of a thumbnail indicates geo-tag. Click on the thumbnail in Picasa, then do apple-I (get info) and you see the geo-tag:
In Picasaweb after the photo is uploaded