What is this script?
 

It may or may not be a script, but on this page, you'll see the following text:

I'm F / 19 / Chambersburg ...

Is there a script out there that will take the IP of the user's target computer and translate it to an actual location?

You betcha
http://www.maxmind.com/geoip/api/mod_geoip.shtml

As far as I know it's impossible to get an exact location. Best you can do is get the location of who the IP block belongs to, and that can be miles and miles away from you.

For example:
this is an "IP Locator"

For me, the city that it displays is like 300 miles or more from here ;/

Gives me a different country.

It missed me by 6000 miles. It said Philidephia...try Hawaii.
It must be a shitty script because my server stats can at least get the correct state.