Web 2.0 for local client SEO question?

For those of you who use web 2.0 for ranking local client sites...I've got a question.

Say I have 3 clients in the same niche, dog kennels. Each client is in a different state.

Should I create a network of 10 web 2.0 sites about dog kennels, and link them to all 3 of my clients in different locations?

Or, should I create 10 separate web 2.0 sites for each location, and link ONLY to the client in that location. Ex. 10 web 2.0 about dog kennels in Denver, 10 about dog kennels in Atlanta, etc.

You should create separate web 2.0 for each client based on location. You should distribute your work accordingly to three different clients!

I would, without a doubt, be building entirely different networks for each of those clients.

One thing I do when I create a property for a client that is looking to rank locally is to add in their address/phone in the content and having several different addresses on the same Web 2.0 could "confuse" the search engines. I may not put that address on each article but I certainly have it on the Web 2.0, or any other off site property, but it is on the property somewhere.