Is WiFi address an I P address?

The "wi-fi address" you find in your Touch's settings is actually its MAC address, a unique identifier for all network-enabled devices. Your device only has one MAC address, but can be given a variety of IP addresses depending on which network you join.

Your location is not determined by your Touch's MAC address -- it is the router that you connect to that the Skyhook database uses to determine your location. It is not uncommon for Skyhook to be in error, but it wouldn't be using your Touch's address anyway. If you have a wireless network at home, it is your router's MAC address that would be used for your location.

Ummm thats not correct....

MAC addresses do not tell anything about location. When you try to track someones location online you would use their IP address which is assigned to their ISP and issued to their router. All that MAC addresses tell you is who the manufacturer of that device is and works as a universally unique number for that Network Interface Card(NIC) whether it's wired or wireless. Wifi is a wireless network that you give a name to. Your router has a MAC address as it also has a NIC, but a wifi does not have a MAC. It is just the local wireless network to which your computers and devices connect in order to connect to the router and the internet.

Sorry, that's not entirely correct. An IP can tell a general vicinity, and a MAC address identifies an equipment manufacturer, but the Skyhook database is MAC address-based -- you enter a MAC address and location of the router/access point and that's how the location-based services work for Skyhook-enabled devices like the Touch.