Take Google Earth and add a Google Book Search layer and you can do some interesting things with teaching literature.
Google Books has a "places mentioned in this book" feature that uses a map to show you locations referenced in a particular book. Now, with the new Book Search layer, you can flip that over and use a map of a place and find the books from there.
I really used to enjoyed having my middle school students create settings maps from novels we read. Mapping books with real locations is good, but books with imaginary settings are a lot more fun and far more challenging. I think it not only makes the settings real for students, but it's also a tremendous problem-solving exercise.
The Book Search layer isn't limited to fiction. I walked through the map for The 9/11 Commission Report recently which contains places in New York City and around the world.