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I've used the 3G kindle all over southwest france and really the coverage is as good as the worst roaming mobile signal - this means that even sitting in a vineyard with only 2 houses within 10km (as I was, near Narbonne, a few weeks ago), if you get a bar on your signal you probably have enough to get a book delivered (probably not enough to browse and order one).
On the question of it recognising IP addresses - I have a US address and a UK address. It restricts content based on the postal address with which the credit card for your one-click ordering id is associated. It doesn't check IP addresses (at least, this is true for the Kindle 2). It is possible, if you have multiple addresses, to switch back and forth via the "manage your kindle" function, if you have multiple billing addresses set up. It is correct that content is then restricted by country, and you are probably better off using your UK address (unless you need French language stuff, I guess).
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