You can set the location using any of the following forms: =london, l=san_francisco, l:place=Los_angeles, geo=MILTON_KEYnes (all case insensitive). In deference to a converntion Brian Kelly is using, the pipe will also accept a ':' instead of the '=', so l:Xiang should work okay... Spaces in the location name should be replaced by an underscore (_).
The pipe looks for the declared location, and temporarily pops it (and it alone) into the post title, (purely within the context of the pipe, of course - your feed isn't affected anywhere else). The pipe location extractor actually looks for a location in the title and description elements of the feed. The twitter feed puts the whole tweet (I think) in the both the title and the description of the feed, so by pulling out the declared location we hopefully give the location extractor a big clue as to the location we want to extract and geocode;-) If you don't explicitly mark up the location, the geocoder may well pull it out of the full tweet in the description part of the feed anyway...
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