To find the tool, navigate to the second home screen of the (iPhone or Android) app -- swipe to the right. Aim at an album of your choosing and snap away. Granted, Moggles is still in beta, so it still doesn't work perfectly -- in fact, a warning screen will pop up when you first use it that says that the service "may produce inaccurate or hilarious results."
In my own test, I had issues locating music from snapshots of the CDs on my desk. However, when I tried snapping a pic of Beck's Odelay on my computer screen, the album came right up on the app. Quirks aside, though, it's a fun idea.
The update also includes the ability to favorite artists, albums, tracks and playlists; sign in from multiple devices (watch out Tennessee); and other tweaks.