Yeah, it's region locked, but you can buy a Freeloader disc to get around it. Be warned that it doesn't work with ALL games - primarily first-party games still won't run.
What Adamant said. There's a couple of Japanese Namco games that won't work even if you chip the system (though apparently there is one chip with a specific firmware load that sorts this) because they check the system region before loading save data and won't load it unless they see the system is Japanese: Mr. Driller Drill Land and Donkey Konga are the ones and the former is the reason I semi-bricked my Wii with a softmod so I could play it and ended up owning a Japanese Wii instead (I had previously acquired a PAL Gamecube and installed a XenoGC modchip, but that didn't help me).
I sincerely hope the next Nintendo console will be region-free for disc playback.
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Topic: Region lock?
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