The search dialog is already a known bug: See
http://goodies.xfce.org/projects/pan...weather-plugin for the fix plan.
Incorrect location is a different problem entirely.
What incorrect location does it show?
What correct location should it show?
If I recall correctly, xfce4-weather-plugin uses your IP address to estimate location. If your ISP has the wrong location associated with that IP address (and many ISPs do), then that's a complaint against your ISP.
You can easily check (or refute) the ISP-reports-wrong-location theory by using any common IP address locator service (example:
http://www.ipaddresslocation.org/ ).
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