1 Generally most DVD players output NTSC in NTSC mode so you will need a NTSC capable TV , but most newer TV 's are capable.
2 OK contentious issue this one, the answer is NTSC should looks slightly worse due to the fact that it has less lines than PAL, but generally speaking they have been authoured better so you cant see the diferance. In fact I would say that a lot of the R1 's I have is better.
Another issue is that the sound in R1 is better than R2, remember that R1 is 24fps ( i think) and R2 is 27 ( again I Think)
Therefor the sound pitch in R2 is slightly higher , so if your the kinda guy that has perfect pitch then R2 will bug the hell out of you
HTH
Laters
Spooks