I just watched the video on google webmaster blog about how to use the Geotargetting tool. Nothing too revolutionary - if your site is for people in france, then use a .fr domain or use webmaster tools to set the Geographic location.
However there was one important point: this is specifically for geographic location of a website, language specific sites should not necessarily be restricted to the country in question. I guess, language will mostly take care of it’s self - french language searches will naturally pick up french language results.
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