To answer your question, it is NOT possible to know or even find out the EXACT location of anyone you are talking to over the internet.
This is due to the way in which packets of data are routed and the various connection types employed by the various ISP's.

For example I am located in the UK yet my IP address idents me as posting from Holland or even Germany.
While IP's from the USA ISP's do give a better general location for each connection this is NOT true for the whole world or even AOL members.

For an indepth discussion refer to this old question: http://www.askmehelpdesk.com/interne...-me-17262.html