Matt Cutts — the voice of Google — has posed a comment on his blog explaining Google’s perspective on Cloaking & IP Delivery. Lookie –

IP delivery: delivering results to users based on IP address. Cloaking: showing different pages to users than to search engines.

IP delivery includes things like “users from Britain get sent to the co.uk, users from France get sent to the .fr”. This is fine-even Google does this.

It’s when you do something *special* or out-of-the-ordinary for Googlebot that you start to get in trouble, because that’s cloaking. In the example above, cloaking would be “if a user is from Googlelandia, they get sent to our Google-only optimized text pages.”

So IP delivery is fine, but don’t do anything special for Googlebot. Just treat it like a typical user visiting the site.

So, what does this basically mean in simple words? If you are doing something special for your regular users — like redirecting them to region specific sites or showing special offers based on their location — then Google is fine with it.

However, if you are doing something just for GoogleBot then don’t do that! Simple.

Via - SERoundTable.