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Interesting thread over at SEO Chat...
To sum it up, if you want a site that shows up in the regional searches for a specific country, make sure you have a domain with that country's suffix, or a .com, .net, .org that is physically located in that country.
A couple examples:
guiden.tv is on an IP address physically located in Norway, and is a Norwegian language site. It shows up in a country specific search for the country of Tuvalu, but *not* Norway:
http://www.google.com/search?q=site:www.guiden.tv&meta=cr%3DcountryTV http://www.google.com/search?q=site:www.guiden.tv&meta=cr%3DcountryNO
dict.cc if a German site (in English) that is physically located on an IP address in Germany. it shows up in a country specific search for the Cocos (Keeling) Islands, but *not* Germany:
http://www.google.com/search?q=site:www.dict.cc&meta=cr%3DcountryCC http://www.google.com/search?q=site:www.dict.cc&meta=cr%3DcountryDE
