I think this is a problem with freegeoip, try the following:
Enter this into the rails console:
Geocoder.configure (: ip_lookup =>: telize)
Now try searching in the console.
if this works, you can have your own file (config / initializers / geocoder.rb)
Geocoder.configure( :timeout=>20, :lookup=>:yandex, :ip_lookup=>:telize, :language=>:en, :http_headers=>{}, :use_https=>false, :http_proxy=>nil, :https_proxy=>nil, :api_key=>nil, :cache=>nil, :cache_prefix=>"geocoder:", :units=>:km, :distances=>:linear )
Hope this helps you.
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