Hello Toby, Yes the Latin American Spanish and the European Spanish are both the same language basically, their vocabulary, sentence structure and grammar are almost the same. However the differences are in accents and dialects in the different South American countries. Another difference lies in the variation in the usage of Spanish words in each south American country .They have some vocabulary and words that differ from each other and from the European Spanish equivalent ones in meaning. A most prevalent example is the usage of the word 'tu' to mean ( you ) in European Spanish and 'vos' to mean the same in Argentinian Spanish.

its the same, the difference is only in the speech.

'Also, I am wondering the Paraguanian and Spainish would understand eachother what they were speaking during in the pitch of world cup, South Africa.' The second lenguage of Paraguay is Guarani, a mesoamerican native lenguage. They made theirs tactics speaking Guarani, for not to be catched by Spaniards players. But they lost. :P

The same diference between England and American english. Some local words, pronounciation...

Hi. Gramatically all are the same. The only difference between the Spanish used in Mexico, South America, Central America, Caribbean and Spain is the vocabulary for slang, and the accents. I guess its the same for all the other languages, like french from France and the one from Canada. The thing is that spanish is the official language for too many countries , and that make this situation more notorious. -Fer-