Page 1 of X-Box query!

im thinking of getting an x-box next month and someone told me that there was no region lockout for the games (not dvds), so i could buy imported games and it would run on a pal machine ok. personally i cant see this but can someone clarify it for me?

Looking in this months Gamemaster Mag, received today, they say that xbox will have the traditional region coding, just like the ps2 and psOne. I am sure that once it is released that there will be various chips for it though.