I think irregardless of the country of origin for the company making the complaint it should be held within the actual country the person resides in and has supposedly committed a crime, otherwise it ruins the system.
Legal specifics will depend on the country you live in.
For example, this would not be possible in France (i live there) as the country never extradites any of its citizens for any reason - this will stand even if you committed a crime abroad and managed to get back, you could only be tried back home -
As for the british kid, I support him 100% but it seems that the UK has signed very liberal agreements with the US concerning their citizens...
Does anybody have any legal specifics here? I wonder if this is something that could happen to just random bittorrent users?