So I played around with the Google Earth integration in Picasa and it is neat. It is very useful if you don’t have a GPS or GPS data for your photos, but it does not automatically correlate the photos with any sort of GPS information.
The best I could do was load my GPS track (GPX file) and view it in Google Earth while I was tagging a photo. It doesn’t correlate the time, but at least you can match the photo with some point on the GPS track. Unless you are in the ocean with no reference points, you can probably get the point within the accuracy of the GPS signal. Unfortunately, it is still a manual process.
I hear a rumour that Google Earth 4 (which I was using) has some sort of time support for tracks but I didn’t see anything with my GPX file. It may require a track that is in a KML format. If that was the case then maybe there is a way to manually find the point in the track that correlates to a specific time (when the photo was taken). This would at least be as accurate as the automated process, but still manual.
Let’s hope the next version improve this functionality.