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Originally Posted by shabbirbhimani
AS far as I know G would not only take the domain extension to detemine the GEO search but also the ip range to find the Geographical location.
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Yep thats the one, make sure you host in the UK. As for the .uk.com, personaly I have stayed away from them for no other reason than they arent a true domain e.g. buying www.yourdname.uk.com is actauly a sub-domain as far as I'm aware. Domains are not my specialty so I could be wrong, very wrong but I will try to explain anyway and if I am wrong, I'm sure someone will point it out  .
What I beleive is that sometime ago when .com's started being sold, someone bought the domain www.uk.com and now sells sub-domains of that domain. If right this would mean the domain is not UK specific in that it is a .com which are regionaly geniric. Also if the site owner of uk.com failed to re-register the domain (which would probably never happen) all of its sub-domains would be lost (and a lot of revenue).
Buying uk.com domains also seems to be very expensive. You said the .co.uk domain you wanted was taken, is there any abreveations available or if it is two words try adding a dash (-).
A lot of webmasters opt for using keyword domains which means using the most common word/words that potensial customers would use to find your products or services. This can help out a lot in the future if you want to try and rank well in the search engines for the keywords. The domain uk.com is actualy a good example of a keyword domain as it contains the keyword UK.
Hope this helps 
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