I used to LARP quite a bit.
The culture of Live Action Role Playing used to be pretty big in Australia, but I haven't seen much of it in recent years. A few freeform games at conventions,a couple of groups clinging on to the heyday of White Wolf's "World of Darkness", a couple of weapon re-enactment groups...bit nothing that really made e want to get thoroughly into the immersive world of live action play like I used to.
Leah (my wife) and I met during a LARP, and recently we've spoken about starting up something new. We've enticed the entire class at college with our stories of drama, action and dressing up. We've found a few table top gamers who are a bit intimidated by the idea of live play (but who are willing to check it out to see what it's all about). I've even spoken to cosplayers at comic and pop-culture conventions who would be willing to push their costuming antics to a new level.
Thanks to Joel Shempert, I've been alerted to an article about LARPing in Denmark and Scandinavia. It's a great read.
Once I finish a few more of my current projects, I might get back into designing a good rule set for LARPing. If you get the chance to participate in one, I thoroughly recommend it as an eye opening experience.