Just got a new Squeezebox the other day. When I installed and synced the spotify app to my spotify account, the unit decided I was in Sweden even though I was in the US connected by a standard US ISP. I was in Sweden about 6 months ago and did use Spotify on my laptop and mobile, but both devices properly synced back to the US when I returned. My Spotify account shows the US as the location, though I did notice that my mobile was initially routed to the Swedish Spotify site in the browser.
I tried removing and re-adding my account and the app on my squeezebox, to no avail. This significantly limits the amount of music I can play as a lot of US artists don't seem to have a licensing deal worked out with spotify abroad, and of course the top tracks are completely different. I can create playlists on my mobile/laptop and then have the Squeezebox play the playlists, but I'd really just prefer to get the correct location set on the Squeezebox.