I am puzzled. I will list the differences my friend and I have in hardware.
I have a US NTSC PS3 which runs WO HD DL'ed on the European servers.
He has a EU PAL PS3 which also runs WO DL'ed from EU servers.
I have a regular old 26 inch TV and he has a 50 inch Plasma.

In the lobby in online play he gets to see what country everybody is from. I don't see any country flags at all. How can this be? I didn't think twice about it when just racing at home, but I went to his house to play I felt cheated. Where are my flags!

Does anybody else have this "problem" ?