I LOVE what Sheriam wrote/does--what a brilliant yet simple and comical way to counteract the confusion!
The town I reside in is the opposite to London yet being 3 hours away, I get the same thing as everyone else who has posted here. To make it worse, whenever my American friends come to visit, they only come to London and always make me meet up with them there. They don't seem to want to experience the quaint historical villages and towns outside of Londonf and therefore still believe that London equals England. If they stayed with me, they could have an entirely different experience or a combination of both (after all, London is a terrific place to visit).
On the same hand, my British colleagues always ask me if I'll be visiting particular family members while in the US (i.e. "will you be visiting your sister in DC while you're visiting your friends in TX?"). They also ask if I know their friend in a particular state after asking where I am from (i.e. "I'm from TX" "Oh, do you know my friend X? He lives in CA.). Of course, this is actually possible as I recently discovered when I went to Sydney, Australia, for a week and visited a friend who ended up knowing a couple of my work colleagues in England!