I reckon Latveria is short for FLatveria, then we can count all of the lowlands in Europe, (Belgium, Nederlands & Luxembourg otherwise referred to as Benelux). This is an area of Europe that at one point was recovered from marshland.
Theory has it that these people have webbed feet and can breath underwater which is why my Dutch wife is such a good swimmer.
Here's a theory I've been working on... [work with me here, came up with it a couple weeks ago]
What if Victor's father used to control Latveria, and had sent his son to the US under a differant name, to aviod the attention possibly, to attend schools that better suited Victor. Somehow his father had gained the form of Doom as seen in the pic in UMTU # 14.
[Here's where it gets weird]. Let's say that victor's father was a sorceror of sorts ala his 616 version and had dissappeared along with the orig. Dr. Strange in a Astral or magic fight.
Upon gaining his powers, Victor figured then he could have the power to rule Latveria with an iron fist, but his misshapenenness has made him unable to gain access to the country. So, instead he grabs a seperate piece of land somehow owned by his family and thus the events of "Doom"
That could actually work... Victor's father could be the person that keeps being referred to as Doom, very possible. He could be in charge of Latveria and he could be an entirely different character all together. Very cool. I actually think you've got the right idea with this one.
I'm officially chaanging my name to Ultxon- the Continuity Mender.
Actually i've been contantly trying to find ways to make the events of the ultimate Universe work in my head. I'm still trying to work on something for the FF problem...I'll think of something, like what if the orig FF were infact actors and not really super-heroes! [I toldja I'm working on it]