Okay, I've done a little poking around and here's what I've found so far.
[Marvin, if you think this should be elsewhere or a new thread, please feel free to move it.]
Panorado Flyer is a nifty application that installs as a Windows Explorer shell extension. That just means when you right-click in Windows Explorer on an image file (jpg, etc) you will see Panorado Flyer as one of the things you can do.
When you select Panorado Flyer in the context (right-click) menu, you can select to get the location from Google Earth or you can select to edit the location information manually.
If you want to use Google Earth to get the location, you have to have Google Earth running first. You find the desired location in Google Earth and make sure it's at the centre of the map window. Then you right-click on the image file, select Panorado Flyer, select Get Location From Google Earth. A dialog window will pop up with the name of the image file and the coordinates from Google Earth already filled in. If that's what you want, you just save it.
If you choose Edit Location Manually, you will see the same dialog box only this time you need to enter the coordinates yourself.
Once you have an image with the location coordinates attached to it you can right-click it, select Panorado Flyer and you will see a new selection in the context menu to Show Location in Google Earth. If you click that selection, Google Earth will be launched (if it's not already running) and you will fly to the location of the picture. There will be an icon at that location on the map that allows you to click and see a dialog with a thumbnail of the picture. Clicking on the thumbnail will display the full image.
That's fine, as far as it goes, but it doesn't speak to the real power of this. It requires an understanding of how this all works to get to the real power.
When you click to "Show Location in Google Earth", Panorado Flyer creates a temporary file with a .KML extension and launches Google Earth with a pointer to the temporary KML file.
When Google Earth opens that KML file it puts the image location information in a folder called "Temporary Places". You can move that image from the temporary folder to a permanent folder. So, you can have, say, an "IMAGES" or "My Pictures" folder in your Google Earth with a list of all the images that have location coordinates in them. Now when you want to look at, or show, your pictures related to their location you can just open Google Earth and select from the folder you put them in.
This does nothing to your actual image files on the computer. The information in Google Earth simply contains pointers to the image files on your computer.
One last small point that I ran into. The first time I tried to display an image in Google Earth that I had added a location to, nothing happened. It turned out that for some reason the .KML file extension had not been associated with any program. It needs to be associated with "C:\Program Files\Google\Google Earth\googleearth.exe", or wherever yours is located.
Play and have fun. Oh yeah, did I mention that Panorado Flyer is totally free?
...ken...