>  from reading some posts on this forum it seems like
> it's recommended to encode the lat/long into my database.

If you're planning on searching your database by e.g. distance, that
would be a good plan.

>   how do i
> go about that?

Geocode the addresses as you add them to your database.

>  will lat/long data be returned by localsearch?

That would be addressed in the localsearch documentation
http://code.google.com/apis/ajaxsearch/documentation/reference.html#_class_GlocalResult

Are you trying to scrape a copy of Google's data to your own
database?  Quite apart from "why", its probably against the terms of
use, but check the terms for localsearch

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