An article by Brian Cooper titled "Google Street View Continues to Raise Privacy Concerns" raises privacy issues for Google Street View. The article mentions a lawsuit brought by a Pennsylvania couple whose home was included among Google Street View images. The Street View images included close-ups of the couple's home, swimming pool, and outbuildings. The couple sought compensatory and punitive damages, claiming that Google had invaded their privacy, acted negligently, was unjustly enriched, and trespassed upon their Pittsburgh property, which includes a private road leading to their house. However, in a February 18, 2009 article Judge Dismisses Google Street View Case, Juan Carlos Perez of IDG News Service, states that Judge Amy Reynolds Hay from the U.S. District Court for the Western District of Pennsylvania, granted Google's request for dismissing the lawsuit because "the plaintiffs have failed to state a claim under any count."
As one of the commenters on the article by Mr. Perez noted, many people who see Google Street View images as a significant privacy issue may ignore far more serious privacy issues, such as warrantless wiretapping.
You can see where Street View is available in the U.S. at http://maps.google.com/help/maps/streetview/.