So cool a story! But I often met this during my visits in the USA. One time a guy, after I told him, that I'm from Luxembourg, asked me: "Maryland?".
But indeed there is at least one town in the States called Luxembourg (Wisconsin). It was founded by emigrates from Luxembourg as well as a town called Rolling Stone (Minnesota), where they have even a Luxembourg Heritage Museum. Guess I have to visit my ancestors in the States one day! :)