1. (re public schools / in-state advantage): Being in-state might help A LITTLE at a public school --- but not exceptionally, so don't make an assumption based on that. I remember actually calling U of Minnesota (as a potential out of state applicant) and they told me they "technically" favor in state ppl in their formulas, but the role that plays is so small that it is very unlikely to be a deciding factor in an admissions decision. (on the other hand, they might set a target of at least 40-50% in staters or whatever they decide--- maybe toughness on that varies w/ the cycle and who applies).
2. (do private schools consider your location?) -- Here's my idea of that: You might have another slight advantage in applying to a school that is close to you -- I don't think it's necessarily b/c of the STATE you're in, but the GENERAL LOCATION. I'm from the Chicago area, and got into Depaul/Loyola/Kent --- in fact, I heard back from them almost immediately... but most of the other schools that I applied to that had similar stats/ rankings, but were further away, either rejected or waitlisted me. I got the idea that schools were "NUMBERS-CONSCIOUS" re acceptances (e.g. they didn't want to give away more than x # of acceptances that people didn't enroll off of --- SO the waitlist is an effective mechanism for avoiding that problem, b/c they might figure you're less likely to go there if you live far away... if you are really serious about that school, you live far away, and you are a close call for admissions, they can simply WL you. Then, you'll follow up, and they might take you on if it works out...). Again, I think this is far from a primary factor - LSAT and GPA are like 90% of it outside head-turning circumstances.
lawschoolnumbers.com helped me alot in terms of gettting an idea of all this (plus the $$$ aspect)... good luck!