Forum Moderators: Robert Charlton & goodroi
Google Webmaster Tools helps you better control the country association of your content on a per-domain, per-subdomain, or per-directory level
[googlewebmastercentral.blogspot.com...]
Targeting by country and targeting by language are not the same thing. Google is pretty good about detecting the language of a page automatically without any country targeting. Not using any country targeting allows all users of that language to have a better chance of getting the pages from wherever they happen to be in the world.
I work with one website that uses the directory approach successfully for ten languages. We use the 2-letter ISO language code as the directory name, we include the language meta tag, and we translate all the file names, image names, etc - not just the visible text.