In Ohio we have a place by the same name and pronounced the same way. We have a lot like that here that is "pronounced wrong"
As for the other, I've even heard it pronounced Lull-ville... not sure which Louisville they were talking about, but I've heard that before too. I'm closer to loo-uh-vul, though if I am going slower the middle part is a bit more nasaly though not totally an "ee" sound.