By radius, I assume you mean a set distance the device is from the Android devices's current location to someother location?
1. You have to know the distance between the two locations. and the RADIUS you want to test for.
2) Calculate distance D, either by using simple trig, the Haversine formula. Both are useful for short straight-line distances. It is also possible to 'determine distance separation in other ways. If the student's are advanced, they can use aspects of the Google Map API to do this. There also is an example in the free online book here
http://www.appinventor.org/book2 in the section on Sensors that demonstrates how the distance can be calculated based on small changes in latitude or longitude, however be careful, this is not a set distance but varies depending on latitude and deviation of the devices latitude.
4. Then use an if statement with a Clock timer to continuously check the distance between the two locations. Set the Clock to the interval you want to check...remember the time interval is in ms You should not perhaps refresh faster than one minute, the timer defaults at one second unless you change the setting..... if distance > RADIUS then do this, if distance <= RADIUS do that Be aware, the location may take 10 to 20 seconds to get a satellite fix. Sometime the fix is withing 4 or 5 seconds. Why is this important? You do not want to check the distance over small time intervals. The sensor normally checks the position once every 60 seconds...unless the programmer tells it to do something else with their software (Interval).
..That should get them started.
If they are adventurous, they might look at the concept discussed in the LocatonSensor tutorial called Distance, they might be able to use that for RADIUS somehow, however, be aware of two things, Distance units are in meters and it should be used in conjunction with the concept of Accuracy ...If they are successful, be sure and return and celebrate and let others know how they did it....
Regards,
Steve