Xbox Classics region locked downloads?

[wraggster]

After running through the system update I attempted to purchase Magatama [with a Japanese Silver account on a Xbox360 located in the US]. I haven't played it before so I was looking forward to giving it a go. I got ready to expend 1,200 Microsoft Points when an error message popped up explaining the download was not available in my region. The same problem occurred with Puyo Pop Fever. I turned off my 360 and tried again, but this time the option to download the games was not present. I was able to download the freebies (themes and icons), but it appears Microsoft closed off a path to downloadable import games.

http://www.siliconera.com/2007/12/04/xbox-classics-region-locked-downloads/