I can confirm this on Hardy, with libgweather0 version 2.21.2-0ubuntu1
The version from About in the right click context menu of the applet says
version 2.21.4
Explicit steps to reproduce:
1) add weather applet to panel
2) right click, select Preferences
3) Error about not being able to load the Locations XML
** Changed in: libgweather (Ubuntu)
Status: New => Confirmed
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Weather applet cannot access its own location database.
https://bugs.launchpad.net/bugs/184659
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