Had a reply from support which basically said these kinds of searches didn't work particularly well and suggested I search for items in my currency instead. (The problem is, about 20% of UK auctions are listed in US$ for some reason).
The ebay search facility is a little strange, and IMO AS would do better to use a different method. What I mean is that if you click the big search button at the top of an ebay page, you get a particular search screen. On the other hand, if you just type in your search in the left-hand bar you get a much more powerful search as you can drill it down to sub-cats rather than main cats, and the "items located in" options work correctly. It would only be a minor tweak for AS to use this option, and then we could search in sub-cats, too.
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