Well, my definition would be basically a friend or someone whom you know. Perhaps someone from 'around the way' or whatever. I believe the term started with Chicanos, but I'm not too sure.
I've just never heard it literally broken down to mean 'someone from my home town,' and I've never known anyone to use it that way. But you could well be right... I'm certainly no linguist!
I think the more you think on my definition, the more you'll buy it.... ;)
I think the more you think on my definition, the more you'll buy it.... ;)