I'm in Australia and started up a paysite
www.cheatingxxxwife.com shoot my own content, got a host in the US, got Verotel to process the transactions, set up an affiliate program so others can promote my site as well, and am making good $$$ after my first year.
If you can't shoot your own original content, or get hold of some unique stuff then you will struggle. But as far as your first question, then "yes" is can be done..
