I am doing a mashup using Google Maps under Grails where users can create geofences by selecting a point on the map and a radius. This get stored on my database and the appl
Since you are using Google Maps and for geographical distances spherical geometry holds rather than euclidean geometry. However if it is relativley smaller distance like a parking lot etc. then you can use euclidean distance formula (http://en.wikipedia.org/wiki/Distance) to find out whether the point is inside or outside the circle.
I presume you know the coordinates of the circle's center C(xc, yc) and its radius, R. Then for a given point P(x1, y1) find the euclidean distance, D as
square-root((x1-xc)^2 + (y1-yc)^2)). If D > R, the point lies outside the circle. If D < R, the point lies inside the circle. If D = R, the point lies on the circumference of the circle.
In case you are doing your measurements over larger distances then you should rather look for Geodesics (please check this http://en.wikipedia.org/wiki/Great-circle_distance).
I hope it helps.
cheers