As luck would have it, my freeloader came yesterday from Codejunkies and my copy of crazy climber came in today from Playasia. Just as an experiment I put the crazy climber game in first without loading the freeloader.
Nothing happened. It was like there was no disc in the will at all. So I hit eject and following the instructions on the freeloader. It autoplays. After inserting the mini disc you will see a series of colored bars go across the screen twice. Afterword you hit eject and insert the foriegn disc. I insterted crazy climber and it loaded exactly like a regular game. Its like the region lock didn't even exist.
The Game itself is pretty decent. Although, it it suprisingly more physical than most games. The instructions are in Japanese so, I just stuck it in and played it by ear. It was easy enough to play and when I got stuck, at least on the first building, the game goes into a sort of demo mode where you are shown on screen what to do with your hands. After doing that correctly a few times the games continues.
Anyways, I'm sure you are more interested in the freeloader than crazy climber. So, to sum it up it works exactly as advertised.
You could just use the swap trick, it work with import GameCube games as well.