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If I go to live.com I expect to see global results. If I want local MSN results, then I will go to nineman.com.au and search there.
Is this new or I am behind a little? Regardless, I don't like it at all. Woz Not Happy!
Maybe they are using Australia as a testing ground for local search. There seem to be enough sites that could be tagged as "local Australia" (through whois, hosting, or cc TLD) to support strong SERPS for pretty much anything.