The songs on the PAL disc were correct (it was running the PAL disc for sure) and it had me do initial set up (installing the last update, selecting the language, of which the option for English was the union jack which I'm willing to bet is PAL specific) but it was running data from my NA disc. Obviously that didn't work and the discs weren't recognized by the disc transfer, so a month ago I ordered a PAL PS3 singstar disc (the base PS3 disc) and it works on my PS3 fine as excepted, however it ALSO can't recognize the PAL PS2 discs which makes no sense.
A couple of months ago I bought some PAL PS2 discs thinking they would work on my NA PS3 disc since the PS3 isn't region locked.