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The Cache Raider tool uses a My Query to generate a list of 25 caches by proximity to your defined starting point and will then create a map and driving directions to get to the caches in the fastest possible time in the least possible distance. You can see the driving directions and estimates times / distance by scrolling down the page when it's finished.
The cache raider is not the perfect optimal route, but I tell you what, it's pretty darn close. For the full disclosure of why 25 caches cannot be defined as an optimal route I'll let you do some reading here. Yes, that's where the code originated. It's called the Travelling Salesman Problem and the code from that site is available under a Common Public License version 1.0. Geocaching Australia have modified the code somewhat but it's pretty close, functionally, to the original.
For more information on the background, technical limitations and how to set one up, please visit the wiki:
http://wiki.geocaching.com.au/wiki/Cache_raid