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It's totally based on the number of casts. You could skill up to 375 just sitting in Stormwind fishing in the canal.
Very true, except
it's catches, not casts. Casts alone don't count toward skill ups. You have to actually catch, which includes looting. If you catch, but don't loot it, you won't get credit for the catch.
Higher skill reduces the number of misses, depending on the area you're in. For example, Zangarmarsh requires skill 305 just to be able to cast. So at 304, you have a 0% chance and can't cast. At 400, you will catch 100% of your casts in Zangarmarsh. Between 305 and 400, you will have an increasing number of missed fish the lower your skill. Except for the lowest level zones, they all have a minimum skill requirement (x) to be able to cast and a max number (x+95) beyond which no fish will be lost.
Also, the number of fish required to skill up is not dependent on where you fish. It is fixed and only depends on your skill level. And, skill level has no effect on the type of fish caught, or the time (1-20 seconds) per cast. Nor does it modify the required number of fish per skill up. The number of fish required goes up by one about every 25 skill points. By the time you're going for you last points to 375, it will be about 12 catches for every 1 skill point.
So, like Anobix said, you can skill 1-375 in Stormwind. But, the number of fish required for each skill point will be the same whether you fish in Stormwind or somewhere else. The benefit of Stormwind (or other low level areas) is that beyond a certain skill level, you will never miss a catch, so you'll skill up faster than if you went to a higher level zone where you risk missing catches.
El's Extreme Anglin' is pretty much the best fishing site out there, if you're looking for more info. It's a great site.
Edited, Mar 18th 2008 4:05pm by azwing