>I think I'm correct in saying that only McLaren and Ferrari are encrypted.
Correct. Ferrari have been digital since 1998. McLaren have just introduced a digital system this season. Everyone else is analogue, although Jordan use a (weak) analogue scrambler which is easliy defeated.
>I would also think that they have to conform to national/local regulations regarding >what frequencies they can use. This could change from country to country.
The frequencies for the teams only change a little (say +/- a few Mhz) from contry to country and year to year. Given the effort involved with having to reprogram maybe 150+ radios per team they seems have found frequencies which generally fit most countries.
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http://sports.groups.yahoo.com/group/f1scanner/
This is the best site I've ever found for anything to do with F1 and scanners.
Jim.