This is an interesting device introduced by Sony. 
As far as I can tell the Sony product has a MSRP of $129 CDN and has built in flash memory, GPS, software for recording time and GPS location, a battery that runs it for 31 hours and a USB connection for downloading location information to a computer.
What it does is record location and time every 15 seconds (it has room for 30 days of info). This time can later be synced with times of pictures recorded by the camera to give a pretty good approximation of the location of the picture. Indoor pictures are a potential problem but Sony's software manages that by interpolation between points recorded outdoors.
So far the only software for matching and adding picture geotagging is with Sony's cameras but I can see other tools supporting this device quite easily. Picasa and Google Earth are already tied so that geotagging of pictures can be done manually so I think the next step is probably easy and natural.
