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That's the impression I get
No, its at the top of fantasy mount everest. I think there is a map in the AP that shows where it is in the world.
Cool, just out of curiousity does it say anywhere what is at the North and South pole in any official books?
Here's a page with some information about what's at the north, and here's one about what's at the south.
Adventure Jade Regent #3: The Hungry Storm contains a map and a gazeteer of the region around the North Pole.
Xin-Shalast is in the far north-east of Varisia, right near where the nation borders both the Realm of the Mammoth Lords and the Hold of Belkzan. So there's at least a whole country and a glacier between Xin-Shalast and the Crown of the World.