We're entering into the european market and i have a question about hosting our .eu site. I know the IP address of the domain can affect SERPs, but I dont want to have a different server because it will share a database with our .com site. Does anyone have ideas or know of services to forward from a European hosted server?
We work with Rackspace and they have a European server farm. That might be a good resource to look into. We have had good service from them. They are very helpful with explaining various options.
You certainly could just run squid on a european VPS, however in my expierence there's no need to have both a country TLD and a country IP, either one is fine.
Also IRT "Karolis T"'s comment the only way you could get an IP address considered to be in the EU from another country would be from a telco that's willing to do it and is distributed across both areas (this is really unlikely).
If you do want a host physically resident in the EU, use a European VPS. Go for something based in Amsterdam: that's where the AMS-IX International Peer Connection point, which means it is pretty central for most of the European internet, has as good connectivity to the US as you'll get, and has a huge number of VPS providers. Cf. The ICANN IP hubs map.