Being a good corporate citizen i have been using Live Search and found the fact the i could not do local searches absolutely infuriating!  Sitting in a meeting yesterday i noticed Frank had a checkbox in his Live Search for:

"Only in Australia"

(See picture)

But my machine didn't have this checkbox!

 

Both Frank and Andrew guessed it had to do with my language setting in Internet Explorer....Perhaps but for the life of me i could not find the "Australian Language" and as you would guess i was already set to "English".  That said there is a "Location" tab in the Control panel applet Regional and Language Options that was set to United States. (Control Panel>Regional and Language Options>Location>Australia)   

Unfortunately setting this option to Australia didn't fix my live search since the machine HAD been set to United States.  

The only way i found to fix this was to install a machine set to Australia as the location OR go to options in www.live.com and set the language to

English (Australia) as the language

- note this requires you to log into live but after setting this up www.live.com is very accurate as to where you are located.  I am assuming it is using the local maps site like that documented at:

http://msdn2.microsoft.com/en-us/library/aa907670.aspx

calling the services at:

http://maps.live.com/WiFiIPService/locate.ashx