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Hi Adolph,
I am not sure if I am right, but my gut feeling tells me that you have successfully connected to your own locator service, but for the "extent" of the search area, it might be depending on http://tasks.arcgisonline.com/ArcGIS/rest/services/Geometry/GeometryServer.
Check this out on your application builder:
http://resources.arcgis.com/en/help/silverlight-viewer/concepts/index.html#//017700000044000000
Change the geometry server to your own network accessible geometry service.
Hope I am pointing you in the right direction.
Regards,
Raymond