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Burcot it never used to but I am starting to think a co.uk on a uk host MAY do better in google uk, whislt a .com hosted in the UK MAY do better in Google.com.
I really don't know why but the old order no longer holds true! ( All the Time!)
I've been hosting my site in the US (aimed at UK market) for 5 years. For almost 5 years I have appeared in the UK SERP's without fail.
Last week I was completely dropped from the UK results. I'm now about to move my site to a UK host as the drop in traffic is seriously costing me a LOT of money.
erm, there is a flaw in your logic here, if you are hosting abroad then your ip address will be 'foreign' it cannot be a uk ip address!