To add to Andrew's response,
1) If what you want is to locate users within a specified radius or bounding box, you can certainly query a Storage layer that contains the locations of your users.
What you'll want to do is create a SimpleGeo Storage layer that holds the locations of your users. Then, you'll want to create a record for each user. When a user changes location, your app will need to update the user's record with a new latitude & longitude.
At any time, you may query Storage using a radius or bounding box to find all the users within a given area. After that, it's trivial to show these users on a map.
Ryan