Cool, Thanks for the info Skinny
MG, it is working now! (sort of)
Do a search. You'll get a page of auctions. On the left nav bar at the very bottom click the customize link. Add 'Items Near Me' to the options you want displayed and then Save.
You'll now have that option in the nav bar after a search. Check it and click 'Show items'
You'll have to select the area you want to search the first time through.