It would work, but you might look at Maxmind's geoip lite city database... if no cookie is found, look them up and try to get close. Much nicer experience to say guess their city with a little link to let them change it if you guessed wrong...
http://www.maxmind.com/app/geolitecity
-philip
I would do it using the session rather than a cookie (though the same
thing underneath of course, but more railsey).
Colin
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