Im not sure how to deal with kml files. Now important particularly in reference to the Google Venice update. My site basically is a guide of many company listings (sort of Yellow Pages). I want each company listing to have a geolocation associated with it.

Which of the options I present below is the way to go?

OPTION 1: all locations in a single KML file with a reference to that KML file from a geositemap.xml

MYGEOSITEMAP.xml

<?xml version="1.0" encoding="UTF-8"?>
<urlset xmlns="http://www.sitemaps.org/schemas/sitemap/0.9" xmlns:geo="http://www.google.com/geo/schemas/sitemap/1.0"> 
<url><loc>http://www.mysite.com/locations.kml</loc> <geo:geo>    <geo:format>kml</geo:format></geo:geo></url>
</urlset> 

ALLLOCATIONS.kml

<kml xmlns="http://www.opengis.net/kml/2.2" xmlns:atom="http://www.w3.org/2005/Atom">    
<Document>
<name>MyCompany</name>
<atom:author>
    <atom:name>MyCompany</atom:name>
</atom:author>
<atom:link href="http://www.mysite.com/locations/3454/MyCompany" rel="related" />    
<Placemark>
<name>MyCompany, Kalverstraat 26 Amsterdam  1000AG</name>
<description><![CDATA[<address><a href="http://www.mysite.com/locations/3454/MyCompany">MyCompany</a><br />Address: Kalverstraat 26, Amsterdam  1000AG <br />Phone: 0646598787</address><p>hello there, im MyCompany</p>]]>
</description><Point><coordinates>5.420686499999965,51.6298808,0</coordinates>    
</Point>
</Placemark>
</Document>
</kml>

<kml xmlns="http://www.opengis.net/kml/2.2" xmlns:atom="http://www.w3.org/2005/Atom">
<Document>
    <name>MyCompany</name><atom:author><atom:name>MyCompany</atom:name></atom:author><atom:link href="http://www.mysite.com/locations/22/companyX" rel="related" /><Placemark><name>MyCompany, Rosestreet 45 Amsterdam  1001XF </name><description><![CDATA[<address><a href="http://www.mysite.com/locations/22/companyX">companyX</a><br />Address: Rosestreet 45, Amsterdam  1001XF <br />Phone: 0642195493</address><p>some text about companyX</p>]]></description><Point><coordinates>5.520686499889632,51.6197705,0</coordinates></Point></Placemark>
</Document>
</kml>

OPTION 2: a separate KML file for each location and a reference to each KML file from a geositemap.xml (kml files placed in a \kmlfiles folder)

MYGEOSITEMAP.xml

<?xml version="1.0" encoding="UTF-8"?>
<urlset xmlns="http://www.sitemaps.org/schemas/sitemap/0.9" xmlns:geo="http://www.google.com/geo/schemas/sitemap/1.0"> 
<url><loc>http://www.mysite.com/kmlfiles/3454_MyCompany.kml</loc> <geo:geo>    
<geo:format>kml</geo:format></geo:geo></url>
<url><loc>http://www.mysite.com/kmlfiles/22_companyX.kml</loc> <geo:geo>    
<geo:format>kml</geo:format></geo:geo></url>
</urlset> 

*3454_MyCompany.kml*

<kml xmlns="http://www.opengis.net/kml/2.2" xmlns:atom="http://www.w3.org/2005/Atom">
<Document><name>MyCompany</name><atom:author><atom:name>MyCompany</atom:name></atom:author><atom:link href="http://www.mysite.com/locations/3454/MyCompany" rel="related" /><Placemark><name>MyCompany, Kalverstraat 26 Amsterdam  1000AG</name><description><![CDATA[<address><a href="http://www.mysite.com/locations/3454/MyCompany">MyCompany</a><br />Address: Kalverstraat 26, Amsterdam  1000AG <br />Phone: 0646598787</address><p>hello there, im MyCompany</p>]]></description><Point><coordinates>5.420686499999965,51.6298808,0</coordinates></Point></Placemark>
</Document>    
</kml>

*22_companyX.kml*

<kml xmlns="http://www.opengis.net/kml/2.2" xmlns:atom="http://www.w3.org/2005/Atom">
<Document><name>companyX</name><atom:author><atom:name>companyX</atom:name></atom:author><atom:link href="http://www.mysite.com/locations/22/companyX" rel="related" /><Placemark><name>companyX, Rosestreet 45 Amsterdam  1001XF </name><description><![CDATA[<address><a href="http://www.mysite.com/locations/22/companyX">companyX</a><br />Address: Rosestreet 45, Amsterdam  1001XF <br />Phone: 0642195493</address><p>some text about companyX</p>]]></description><Point><coordinates>5.520686499889632,51.6197705,0</coordinates></Point></Placemark>
</Document>
</kml>

OPTION 3?