Picasa 3.5 is not your parents photo album, it now has name tags (which performs more like facial recognition), you can perform geo-tagging with Google Maps, they have an improved import room, and much, much more.
As if facial detection/recognition wasn't enough, after you've tagged an image with a name it will search your Google contacts and match the two together.
You can download Picasa 3.5 here, find out what's new in Picasa 3.5 here and get help with Picasa and Picasa Web Albums Help here.
Here is a two minute video showing you what's new in Picasa 3.5.
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