Google announced its latest toolbar for Internet Explorer with location-based functionality. This feature currently works for US users only. It captures the location based on the nearest Wi-Fi location.

To start with this information will be used to filter and show more meaningful results for certain location specific queries. For example if you are looking for movie tickets it will show you the results from the nearest cinema hall.

The service will only be available to users who opt-in to use this feature.

Google indexes almost everything that’s out there, imagine if services are built to use the existing information in Google’s index along with the location based service for each user. Results can be creepy at first but more useful as we get use to it.

For example, log into your Google profile to see news related to your location, list of events happening in your local area during the month, or if someone from the same area is trying to hookup for the weekend or just for a night, etc.. There are endless possibilities as to what Google can do with the existing information and Location based data.

Google also announced Toolbar Labs which will serve as a platform for experimental plugins and features.  It currently holds “Google Toolbar with My Location” and “Google Simplified Chinese Toolbar”.

Click here to download Google Toolbar with My Location

Lets look at a few highlighted features on the new Toolbar:

Support gadgets with custom buttons:
The new feature lets you add gadgets to the toolbar in the form of buttons/icons which will sit on your toolbar. These gadgets will popup whenever they are clicked on.

I installed Youtube gadget which shows top/popular videos whenever I click on it. Visit the Gadget Gallery for Toolbar here.

Save Settings Online:
All you have to do is select “Access your Toolbar settings everywhere’ in the Toolbar sign-in menu. Next, time you sign-in from any other computer, your saved settings will be applied to the Google toolbar installed there.

Find words on a page:
This feature works in IE only. Once this feature is activated on the toolbar it disables the default IE search functionality and adds its own search feature at the bottom of the browser whenever called upon.

Fix navigation errors with automatic suggestions:
With Google Toolbar 5, say goodbye to 404 error pages shown due to misspelled URL’s. The new toolbar will show you suggestions for what it thinks you wanted to type.

Access Web History:
With this feature you can access web history to see what you have been searching for lately.

Few other features include, Improved Autofill, Autolink, Browse by Name, etc.. Click on the following link to download the latest Toolbar for Firefox.

Click here to download Google Toolbar 5 for Firefox

Watch the video to see some of the new features in action.