James,
If you have a site configured with more than 1 package server, the Notification Server is configured so that the package servers will always try to download from each other, if their package states are 'Ready' on the NS, before going to the NS. If I was you, I would separate the US and South America into 2 different sites or set one of your package servers as constrained and the other as unconstrained. Even if you set the option in coresettings.config to force package servers to always download from the NS, the PS's within a single site will always try to download from each other.
Also, simply unplugging one of the package servers won't necessarily cause an immediate failover to the NS. The package server will still have a Ready state for its packages on the NS. You would have to get the package states to a not ready state or remove the package server in the NS.
This is one of the areas I'm hoping for some big improvements in NS 7 because it can get really funky if there are more than 1 PS in a site.