I am using the spatial server plugin for Neo4j 2.0 and have followed the guide at http://neo4j.github.io/spatial/ to add a node with name Stockholm.
:POST h
In order to query using Cypher you'll need to add each node to an index:
:POST http://localhost:7474/db/data/index/node/geom
{
'value': 'dummy',
'key': 'dummy',
'uri': 'http://localhost:7474/db/data/node/NODE_ID_HERE'
}
I wrote a blog post about getting starting with Neo4j Spatial recently that covers this: http://lyonwj.com/mapping-the-worlds-airports-with-neo4j-spatial-and-openflights-part-1/