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Albert Penello explained how it works for non supported regions
http://www.neogaf.com/forum/showpost.php?p=76585023&postcount=19
"It's totally different.

First - all games are WW signed. Not all 360 games are.

Second - The console will work everywhere (keeping in mind Power Supplies)

Third - You can use one of the 13 digital marketplaces corresponding to our launch markets, assuming you have a valid payment instrument for those countries. Lots of people in Europe specifically travel, move, and visit family.

Now, of course, if you were using Pre-Paid cards... :)

You will still find that music and video content can be geo-restricted based on licensing. (e.g. Netflix works only in supported countries)"