Thanks everyone! Its been a crazy week that's for sure. The DEMO event was awesome. We got a lot of good press coverage and a lot more coverage that has not been released yet.
To date nobody has released desktop software with face detection/recognition. The picasa 3 software does not have recognition...only picasa WEB has this.
Our philosophy is that you should tag your photos BEFORE you upload to the web, that way you retain the work you've done tagging your photos, and have the power to filter by specific people on your entire library (not just the photos you've uploaded online)
Once you do decide to share online, the connections between the people in your photos happen automatically.