In saying that, I'm now in a PAL region (moved to Australia with my Canadian NTSC Xbox). I'm curious if I bought a local PAL Xbox at some point if I'd be able to play some of this region locked Euro games. Can you or anyone confirm this? I guess I just don't know if it's more of the fact that things are locked to a physical region like DVDS or if it's a PAL/NTSC thingy.
I had a NTSC-US 360 when I lived in Australia, too, and from experience and research, the Games on Demand versions of games seem to have the exact region-locking as their disc versions (I have yet to find an exception). But the largest barrier for GoD regionability is the IP restriction. It's not enforced on all games, but plenty of GoDdies need you to be in the region you're buying from - and Hungary is Hungary
, so even the Swiss and the Italians can't usually buy from there (or from each other), despite all being best PALs.
To sum up: if the game is IP-locked, you'll need to be there
to get it from there.
If the game is not IP-locked, you'll still need a correct-model 360 for the game's region if the game is region-locked
Another quick example: El Shaddai was recently on sale, not IP-locked, but the game itself is completely region-locked (on disc, and therefore on GoD too). So even though I'm in Asia at the moment, I could buy it and download it to my NTSC-US 360. Wouldn't have worked with my NTSC-J 360, though.
Play-Asia is a good resource for checking 360 game region-locking - much more so now that they've added European 360 games to their catalog.