Where in the World is Middle Earth?

Via Paul Smith, how the geography of Middle Earth relates to the geography of Europe. It's a neat idea, but after looking at Tolkien's map, it isn't quite right. The major cardinal directions don't line up and, more importantly, several mountain ranges don't intersect in the right places. So while you can get Conan the Barbarians Hyborea by sinking land and raising seas, I don't think you can do it as easily with Middle Earth.