Just to avoid any confusion, I'll chime in.
Region 2: this includes all of Europe, not just Western Europe as someone suggested. Also, Japan is Region 2 as well.
TV standards: PAL is used mainly in Europe, Australia and some Asian countries. NTSC is also used in Japan.
So, you can have region 2 discs in either NTSC (Japan) or PAL (Europe).
Switching between formats: your player might be able to recognize and read both PAL and NTSC discs, however I am almost certain that no set-top DVD players will perform a format conversion. That is, if you have an NTSC disc, you can only play it with your player set to NTSC, and the output signal will be NTSC as well (30 fps, 525 vertical lines), whereas if you play a PAL disc, you have to set your player to PAL, and the output video signal will be PAL (25 fps, ca. 600 vertical lines, I think). Your TV has to support both formats, your DVD player will NOT convert the signal, just output what it reads.
The same thing was true with dual-standard VHS decks. Only two companies made VHS decks that could actually convert between various formats. Panasonic made one, but that beast cost around $3000. Naturally, most of the cost went to the conversion circuitry, and converted images still looked nasty...
As far as I know, the ideal solution for switching between formats and regions is a PC with a video card that has a good quality TV signal (ATi comes to mind), a DVD-ROM with cracked firmware (available on the net for most drives) and a program called DVDGenie. You can set up the program to switch your software DVD player's region automatically when you insert a DVD. You can build a good Home Theater PC for around $500 that can play all DVD's, and the computer's hardware takes care of the frame rate/resolution conversion from NTSC to PAL and vice versa.