This theory places Middle Earth in northwest Africa (present day Morocco and the Atlas Mountains) in pre-Phoenician times. I need an Ice Age Spain to get it to work, and I think Phoenicia missed the Ice Age.
Using GoogleEarth, I studied Morocco and was able to trace a route from the northeast to southwest that closely follows the storyline of Tolkien's books.
Here are the important locations.
Rivendell is located somewhere in Tazekka National Park (most likely near the lake named Barrage Bab Louta).
The Shire is about 100km to the northwest. Look at the area between the town of Taounate and the river just south of that town. You can even see the Buckland bulge on the opposite bank of the bend in the river.
A straight route from Rivendell through the Shire points to the Gray Havens at the Straight of Gibraltar. This puts Numenor in the Azores (or possibly further south).
Moria is located quite a distance south in Toubkal National Park. Enter from the lake named Barrage Ouirgane, then journey through the mines 15-20 miles to the exit at the lake named Lac d'ifni. This places the bridge of khazadum somewhere under Jebl Toubkal (elevation 4167 meters) in the High Atlas Mountains.
Following the water downhill from Lac d'ifni you pass through Lorien on your way to the falls where the breaking of the fellowship takes place. The falls (now a dam) are at the western end of the lake named Barrage Aoulouz.
Frodo and Sam head south beneath the river toward Mordor which is in the Anti-Atlas range centered on the modern town of Tafraout.
The others head west above the river through Rohan, past Isengard (location uncertain), and eventually reach Minas Tirith located near the modern town of Agadir.
I found a great hill to place Minas Tirith, but it is much closer to the sea than Tolkien shows on his maps.
The battle plain in front of Minas Tirith extends from Agadir to the river and the modern towns of Inzegane and Ait Melloul on each side of that river.
If you look at the Anti-Atlas mountains around Tafrout, its not hard to imagine Frodo and Sam continuing on past the black gate and finding another route into Mordor.
----------------------further notes-------------------
To get this theory to work, I had to sacrifice the full length of the Anduin River. The Anduin is now fragmented into several rivers.
The events of the hobbit are harder to work out, but I still managed to find a probable location for the lonely mountain and laketown in eastern Morocco.