Region code restrictions are easily removed, either through reencoding of the DVD or a hacked DVD player. On the other hand as Boba_Fett alluded, playback of an uncoverted PAL source through a NTSC television can be a major problem.
The Philips DVP-642 Hack
can make this popular DVD player region-free. It has a built in PAL to NTSC converter that will allow viewing region 2 PAL DVD's directly through a NTSC TV set. I have seen one report that the viewing quality through this conversion may not be optimal as the conversion process has only 2 MB of memory available. Even so, most users seem very happy with this player, and it has outstanding capabilities for its price. It plays both DVD+/-R/RW, in other words all common DVD recordable formats, MP3, and MPEG 4. Playable MPEG 4 formats include DivX 3, 4, 5 and XviD.
See a number of User Comments Here
This player is currently sellling for about $70 at Target, CompUSA, Walmart and other stores. Best Buy has it on line for $75.