Providing Picasa has write access to the files then the name and tags are 
placed in the EXIF data in the images themselves.  Checking with "exiftool" 
or similiar shows that:

Description                     : Treecreeper recovering from flying into 
the window
Keywords                        : bird, treecreeper, Climacteris affinis, 
White-browed Treecreeper...

Similarly the location info. is in the GPS EXIF tags.

Face information, image transformations etc that have not been saved into 
the images are held in the picasa.ini (or .picasa.ini) files.

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