Do SEO friendly Directory need to be standard products?

yep, I believe they should be so. Google has standards for that.

ok, so please don't slam me for this question, but I have some dickweed who has pirated my websites and is selling them as his own. Not only that, but the same dickweed is leaving bad reviews for my company and glowing reviews for his own. He has even gone as far as creating a dummy web design company and created a Google places listing that now shows above mine! On his site he claims he is an expert SEO and AGAIN slams my business.

ok, so please don't slam me for this question, but I have some dickweed who has pirated my websites and is selling them as his own. Not only that, but the same dickweed is leaving bad reviews for my company and glowing reviews for his own. He has even gone as far as creating a dummy web design company and created a Google places listing that now shows above mine! On his site he claims he is an expert SEO and AGAIN slams my business.This dickweed has seriously affected my business and even one of clients is concerned about it and wants me to remove my tag from the footer of their site so no one associates them with what's going on.
I have registered the .net of his domain and setup a hosting account on the same IP as his website. What would anyone suggest would be the best way to get this dickweed booted out of Google places, or better the Google index?

SEO is of much use in a B2B situation. As well as making sure the site is optimized for phrases that business users in your niche are searching for. The only thing I would try would be to upload to a remote testing server to see if the behaviour is somehow being caused by your XAMMP stack.