I have still not seen any proof that setting the target country in webmaster tools works but one thing that is interesting is that it's not possible to set up sub-folders as "sites" in the webmaster consol and you can there for set sub folders to be targeted at certain countries.
I have done a few tests and my results so far show no improvement in google.country after setting targettting that folder to a certain country.
I'm not sure if there's a lead time or they stiiiiillll haven't fixed it yet, which would be really annoying since they failed to mention that when promoting the above functionality...
