I question the geo location data. Every thing i used to get my location with my ip addresse put my location at least ~75km off my real location. Does this software use more?
I guess that it depends on the ISP (for general area location) or the Wi-Fi SSID and MAC (for exact location). I just ran an HTML5 geolocation demo http://html5demos.com/geo from my wi-fi connected laptop, and the location is less than a couple of meters off. It even shows the correct corner of the building, where my apartment is.
Even if it's 100km off from Tehran, it's still quite far off from the UK, where it was originally stolen.
If it's that wildly off then they're probably just using the IP address to do a WHOIS and basing the location on the details reported by the ISP, which tends to be wherever the largest office of the ISP is located.