it would seem that the weather gadget is not connecting to the server, at least thats the message i get.
i see from your snip thats that case for you also, so its not going to find your location until it connects.
i would use a different gadget that works.
microsoft have done away with gadget support as they want everyone using the apps in windows 8.
if you try the currency converter you may see that is not working also.
this happened a while ago then worked again so its intermittent.
there are plenty of decent gadgets out there that will work. there is one that is very similar in appearance, it was posted in a similar thread to this ,will have a search and post you a link.