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As the API from Weather Channel has changed, the XBMC built-in weather forecast vanished from core and from 15th November onwards
it is fully addon based.
This feature requires a build from 15th November 2011 or newer and needs the following commit included:
In order to use the weather forecast you can specify which add-on shall provide the weather information (by default Weather Underground will be selected).
2 Forecast for Unknown Locations
Weather forecasts for smaller cities/villages/communities locations outside of America/Canada, for example in Europe may or may not exist on the weather service you're using. The only thing you can do then is select the closest larger city/village/community.