And I'd like to point out that I don't trace individual IP's. I just bunch them all together and see how many people view the server from each country. I haven't programmed it to collect specific information on any individual, but rather a general profile on where the most visitors are from. I could program it to target individual street addresses and discover the exact location where each individual is located, but that would take a lot of work and I'm not interested in that information. I can however discover who your Internet Service Provider is and report your IP to them. That's what I do when an individual uploads restricted material (such as porn or illegal programs) and refuses to stop.
I would also like to point out that 99% of all servers do exactly what I do. It's not like my server is special or anything. If you go to eBay, they know what country, city, and state you live in. Want proof? Go to a website that has ad's and look at an ad for singles. They say "hot local singles in Maple Grove, Minnesota!" and the area changes depending on who connects. When you're on the net, a certain amount of information is always available to the web master of whatever website you're at. It's just that simple.