Search "near" feature is…

at my site http://loadmatch.net the search feature is returning results that are “in” a city location

for instance if I search Phoenix, Az it returns the listing “in” Phoenix, AZ only and ignores the listing “near” Phoenix, AZ (ie: Glendale, AZ)

If I search Mesa, AZ (another location “near” Phoenix, Az) it returns all listing “near” Mesa, Az. But only if there are no listing “in” mesa.

It seems that the “near” feature only works if there are no listing “in” the searched city.

also when I place the cursor in the search box for “near” it automatically gives a dropdown lists of random cities? How do i stop that?

please advise.