This movie is supposedly set in a small Alabama town, but if you look closely at the street signs when Vinny is first driving into town, you will notice that they are Georgia State Rd. signs. Alabama and Georgia neighbor each other, so this town might be near the border, but all the state road signs in found in this town would not have a picture of Georgia on them.

p.s. I think this is mentioned in one of the special features features of the DVD.