To reproduce, entering a zipcode of 02132 gets saved through the location form as 2132. This is an issue for east coast addresses that start with 0. I verified that entering 02132 in the database directly saves fine so its simply a form ui issue.

Comments

@apmsooner, is this still valid issue for you?
I tested the latest 7.x-3.x-dev version on Drupal 7.12 I cannot reproduce this anymore.

Why no one else reported this ? Is this really that critical ? If you don't mind, I would say this is priority Normal issue anyway.
Can you please try the latest module and the latest core and test again?
What kind of display-modifying contributed module(s) and what theme do you use ? Can you try with a standard Drupal theme ?

Priority:Critical» Normal
Status:Active» Closed (cannot reproduce)

due to #1
feel free to open this if it still actual for You