Upon logging into their home page, users should see an alert box (what else would you call it?) informing them of the new Orkut feature.
Upon clicking on the link you will be able to see where your friends are located around the world, provided they filled out their address details correctly.
Upon clicking on either a group or a person, you will be able to see your friends address, profile link as well as a pretty photo (that is if they have provided one).
The good thing about this feature is that it will help out businesses as they network their goods and services around the world (which is becoming more common, especially around Asian, Pakistani and Indian businesses).
The bad thing about this is that stalkers can know where you reside, so unless you do not mind showing off your physical address to "your friends," you may want to adjust your privacy settings (or simply delete that info on your profile).
I wonder what services they will introduce next? (=
Update (6:28 pm): I am having way to much fun with this, although I wonder if Google could provide something similar for the forums as it would be a great way for members to connect.
Here is another screen shot below.