I would hope so. Yahoo's had it for months and Google's appears to work fine. Of the two, Yahoo's is more user friendly at this point.
The new MSN search will use "Geo-targeting", according to several SEO
news sources conducting interviews with Microsoft officials.
For people searching from their MyYahoo page, why doesn't Yahoo just put a 2nd search button on the page for people who'd prefer to run their search locally instead of world wide? They already know my address (for weather, maps, movies, TV, etc) so I shouldn't have to type it in each time I run a local search.