This plugin creates a new taxonomy for posts, pages and attachments named location.
Further explanations can be found in the mentioned Trac ticket and (in German) in my blog article WordPress: Automatische Taxonomiespalte.
To use this plugin just download the latest master file, rename the
t5-taxonomy-location and move it to your blog. On activation new
rewrite rules will be created, and you should see a new entry for the location
in your admin menu.
English and German are done; I would be very happy to get more translations. :)