Find my iphone has been released on mobile me for OS 3.0 users.
So far it's quite accurate. You can send messages to the phone and play a sound even when on vibrate mode.
If the worst comes to the worst you can trigger a remote wipe.
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MattD: If you switch it off (complete power off) - does it show the last known location?
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freitasm: This is all nice until some idiot stealing iPhones complains to a judge that his privacy is being taken away by the owner who keeps trying to locate him using a GPS tracking device...
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