We watched the trailers for the upcoming film "Borat," with Sasha Cohen doing his shtick as the supposed Kazakh journalist. Chris mentioned "It looks like Romania," and I agreed, but didn't think much of it. When we showed it to Ben and saw the village for the second time, we decided it really looked like Romania. The Dacia being towed by a horse and the white paint on the concrete telephone pole had us almost sure - and by that time it was pretty obvious that the people were not central Asians, it is unlikely that roofing ceramics are that similar from Romania to Kazakhstan, and bringing a film crew to central Asia might present problems that Eastern Europe wouldn't.
So we looked around and found that the village scenes in "Borat" were indeed shot in a village in Romania. We can't find out which village, but that will come.
Be honest, now. You don't have any other family you know who would have recognised it was Romania. Even if they are themselves Romanian. You can only get that kind of inspired journalism here.
Update: The village scenes in "Borat" were filmed in Glod, which is sort of near Brasov and Peles Castle in the Wallachian section of Romania. We were near there in 2001, but have never been there.