We all know the story with the ESRB an the AO rating and the UK ban, but does anybody know, will Manhunt 2 get released in other PAL territories, or it has been completely halted?

More likely it will be dumbed down to get a different rating which means it will be released.

Currently no console maker will allow and AO game on their console.

But AO is only an American rating. They could release it Europe/Asia since it would probably recieve an 18+ rating which is allowed by Nintendo/Sony.
R* probably won't do it however (which is sad because I don't want censorship because parents can't control their kids anymore).

I hope you are right, Benga. Really looking forward to playing this one...

It was also banned in Germany and few other countries, can't recall at the moment what they were.
It's not going to be released "as is" at the moment, but Rockstar will censor it to get a lower rating in the US.

I believe, that it doesn't matter how the game is rated by PEGI, since the game got AO rating in the US, and the console manufacturers don't allow AO rated games.
PEGI 18+ rating compares to ESRB AO rating. What's the age limit in AO?

I just hoped that because Rockstar is a european company, they would release the game in the PAL countries it's not banned already and then tone it down or appeal for the US and others...

 Germany bans a lot of games. However Ireland also banned it. To answer your question, AO is 18. M is 17, funny how one year makes all the difference. =P

According to Wiki, it was rated 18 in Scandinavia and was ready to be released. Rockstar simply didn't because it was 
banned just about everywhere else, so I guess they figured it wasn't worth the cost. 

 Funny? No. Ridiculous? Absolutely. I mean if you can sit through Hostel and Saw, you should be allowed to purchase Manhunt 2.

I think Rockstar needs to make games not violent games. I think the world is just feed up and their letting Rockstar know it.

The thing is, with violence in videogames, I'd be more accepting of them if develoipers weren't making these games around every corner.

It is also banned in Switzerland, and I can't remember another game that has been banned here, Switzerland is quite liberal about that. So I wouldn't expect a PAL-release if it is not changed.