Vancouver.
I came in a little late to the next session at AoIR 2007, and Alex Halavais has already started. He's starting by talking about a series of search engine tests he's done using a set of 25 random English nouns, using Google and Yahoo! in a number of their country-specific versions. He coded the first 100 results of these searches for their country location (mostly assuming that the ccTLDs were accurate) and examined the whois records.
The result has that in most cases here, links were mainly to sites in the U.S. (except for Australian search engine versions, interestingly), and otherwise to the home country. The question, then, is how Google decides where to guide people - shouldn't localised search engine versions be more strongly localised in pointing to domestic sites?