Google Ranking by Hosting Location?

[imulus]

This is pretty interesting, I work for a interactive agency in Boulder, CO yet our website is hosted out of Vancouver, Canada. If you search on "interactive agencies" on Google.com we appear #7 (imulus) however if you search in Google.ca and pick "web pages from Canada" we appear #1.

Don't get me wrong, I like #1 but why can't Google base our locational data on our WHOIS data rather then the geographic location of our hosting company?

[imulus]

I see Danny Sullivan cleared this up, please remove my post!

[critter]

Where did Danny clear is up?

Im looking for some documentation to show some colleagues on this issue.

Cheers

Critter

[dannysullivan]

Guidance over here:
http://forums.searchenginewatch.com/showthread.php?t=8608