In reply to:

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But it's already optional whether or not to enter anything in the "Location" bit of your profile. Waterman981 is only asking for a search function acting on the data already there.

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Exactly what I mean... I mean if you didn't want your location known put "Mars" if you want. You can make it as general as you want. Say by country, or even city. I think it would be a good tool to arrange meets and such.