Bagi, the more i thought about it last night the more i started to think perhaps cities would be simpler too. It's not obviously anywhere near as accurate (because postcodes go down to the sub-street level), but, it would at least give administrators some ability to charge for varied UK postage for different geographical areas. To avoid typing mistakes from the user confusing the script, the town/city in the billing and shipping forms could be a drop-down selection box of all UK town/cities maybe?
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