There is some confusion in the Blog, on how the answer of: New York was arrived at.
We are given the link to the crossword puzzle ( http://picasaweb.google.com/agentmaterial/AgentMaterial/photo?authkey=R_WGQvb9mYs#5086347690678911762 ). Copy this address and load it into the Image Filter on your Agent Console. Then use your different Image Filters A, B & C. I can't remember which one shows the encrypted message. When you pick the right filter, certain letters in the crossword puzzle will highlight and appeared scrambled. They will then unscramble to reveal the answer as New York.
Hope this helps.
P.S. Thanks to everyone who has been so helpful by posting the answers for everyone, in the forum I would just like to suggest, that in the future, if you are going to be the first person to post the answer here in the forum, to also post how the answer was arrived at. Some people like to try to solve the puzzle first, then come here if they get stuck. They then like to see the answer as well as how you got it. It is also nice, to warn people in the beginning of the post, that the answer will be displayed, further down (then leave blank lines between warning and answer). Sometimes people search the internet for hints & tips to the game, so they can try to solve on their own, and get a little upset when they click on a link that takes them straight to the answer without warning.