1. I'd recommend you get a chip called the 'DMS3' It's the best out right now according to many sources. www.dms3.com shows the specs
for the chip you have to buy it elsewhere. Email me if you want some sources to order from. I dont want to be a source of free or unappreciated 'advertising' on these boards.
2. You can play all regions of DVD's on a DMS3 modded.
3. You cannot* play imports on an unmodded PS2.
* - actually some companies i think sell a 'boot disc' that lets you put an import game in. works kind of like the gameshark or action replay,
you put it in first, it loads some stuff, then asks you for your disc. I have never tried one so i don't know how well they work.
As for chips: I personally like the DMS3 a lot. It plays region 2 dvd's on my region 1 ps2 (My $98 japanese DVD edition of Macross DYRL plays great on it. It plays all my PS1 Anime related import games well. (Macross VFX, Macross Plus Movie Edition, Macross DYRL (2d shooter, forgot the exact name, its the one that was out for the Saturn too, Votoms, Gundam Char's Counterattack, Gundam Battle Assault II, etc.) I personally DEPLORE region coding. How many of those games have come out outside of japan? Exactly ZERO. The DMS3 is also flash upgradeable so it should be able to keep up with sony's anti-mod chip 'fixes' for a while. Eventually they will probably find a way around it, but i think that will be a while. (opinion, not fact) Basically the DMS3 will play anything you put into it. I do not know how well it handles the PAL/NTSC issue though, as I have only used NTSC equipment.