It's a pity that this application doesn't come standard within the firmware.
My experience:
I use it on my N95 since it came available on betalabs. With this application, your photos will be automatically geotagged. The location information is stored in the EXIF data of the photo. So, if you upload the photo to sites like OVI, Flickr or Picasa, the location where the picture has been taken, is displayed.