[BreShiE]

I tested the IP tracer on myself and got good results, however testing someones IP from the Netherlands it said he was in the US.
Weird.

The IP tracer works perfectly fine. As Cyber-Savage said the person was possibly on a VPN and/or a proxy. One way to check that this is right, and you just didn't get false results would be to test it on a site. For instance:

http://www.whatismyip.com/ip-tools/ip-address-lookup/
http://www.ip-adress.com/ip_tracer/
http://www.ip-tracker.org/

The website goes to Holland, Anarchy tools went to NYC.
Weird..

Well that's quite impossible as AnarchyTools uses one of those websites! You have mistyped the IP while putting it in the program. Try once again.