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Then there is the commercial service of MaxMind. They go down to organisation level (including ISP) but they charge you an arm and a leg even if you request city-only. Results are pretty good though but problematic with some dialups. They have a free service too, but it only resolves the country.
What I am looking for is the "middle way". Getting the country right is a MUST, don't finding the city should be an exception. Moderate pricing would be preferred.