Kudos to the Flickr folks at Yahoo! as they will be rolling out geo tagging functionality later today as noted on TechCrunch. Utilizing Yahoo! Maps and Yahoo! Search technology, the new flickr feature will bring an updated Organizr which allows you to tag your photos and photosets by simply marking them on a Yahoo! Map. In addition, you will be able to search for photos by location which should come in handy if you want to scope out a new city or college campus.
Currently it seems as though all geo tagging is manual and you must do it on a per photo or per photoset basis. Hopefully in the near future when digital cameras come equipped with GPS data loggers, Flickr will be able to extract the new EXIF image data that might carry longitude and latitude coordinates.