I guess I just assumed everyone knew how to do this, then I was talking to a fellow eBayer/bargain hunter at work and she seemed shocked at my info. Here is what I do:

Before searching, click on the "advanced search" link in the upper right corner. At first it opens up a basic search screen. Then click the "advanced search" link at the bottom of the screen and it opens up more options. Scroll down to where it says "Items located within..." click a check mark in front of that, select a nuber of miles from the drop down menu, and enter your zip code. Enter a keyword or words at the top and you are now checking for items within a certain number of miles from your home. If you find something you are interested in, you can contact the seller and ask if they will let you pick up the item to avoid shipping charges. I will often type in some general keywords and do some "window shopping" for things I didn't even know I wanted. Thats how I found my wallpaper border for my bathroom ($1.50 for 5 rolls!) I got a pair of Tommy Hilfiger jeans for 99c! I've gotten a lot of local items for very little money, its awesome!!!!