OK, so I tried implementing this, http://ipaddressextensions.codeplex.com/.
It is displaying the output as:-
127.0.0.1 RESERVED ZZ
What on earth i
127.0.0.1
is known as the loopback address and is what your system uses to talk to itself effectively. As a result, there is no country associated with that IP address... it's everywhere on every system.
If you put your code out onto the web you'd get more appropriate results as each visiting system would be using a public IP address to reach your server.