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Maile Ohye over at the Google Webmaster Central Blog has a great post about how Google defines three issues that often arise for site owners and Webmasters: IP Delivery, Geolocation and Cloaking. Basically Google breaks it down like this:
Geolocation: Serving targeted/different content to users based on their location. As a webmaster, you may be able to determine a user's location from preferences you've stored in their cookie, information pertaining to their login, or their IP address.
IP Delivery: Serving targeted/different content to users based on their IP address, often because the IP address provides geographic information. Googlebot should see the same content a typical user from the same IP address would see.
Cloaking: Serving different content to users than to Googlebot. This is a direct violation of Google's Webmaster Guidelines. As Google states, "Make pages primarily for users, not for search engines. Don't deceive your users or present different content to search engines than you display to users, which is commonly referred to as cloaking."
The entire post, which includes a seven minute video on IP Delivery can be found here:
http://googlewebmastercentral.blogspot.com/2008/06/how-google-defines-ip-delivery.html
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