How is an international registration of a trademark policed? What about countries that do not respect USPTO laws? Seems like a waste of $. Anyone have any experience with this issue?

its policed just like any other enforcement action locally (nationally). but the countries that are not a part of the trademark and patents treaties do not have to abide by it, and you are simply out of luck. Butl, enforcement is always up to the owner of the trademark.

The cost of obtaining an "international" trademark is about 1k to 3k. It seems like a waste of $ seeing as it may not protect you at all. Foreign countries that dont respect our laws can infringe all day long and there nothing you can do about it.

trademark laws apply only in their applicable country or jurisdiction, a quality which is sometimes known as "territoriality".

The major international system for facilitating the registration of trademarks in multiple jurisdictions is commonly known as the "Madrid system". Madrid provides a centrally administered system for securing trademark registrations in member jurisdictions by extending the protection of an "international registration" obtained through the World Intellectual Property Organization. This international registration is in turn based upon an application or registration obtained by a trade mark applicant in its home jurisdiction

Also check out the International Trademark Association for info and details.
From what i gather its very difficult to protect your trademark in counrties where they dont have laws that respect US trademarks.
http://www.inta.org/

If you plan on doing business in other countries, such as the Orient or in Europe, registering there would be a wise idea. The US is one of the countries that looks to see who used the mark first in commerce, regardless as to who files an application first, in determining priority of whose mark should get trademark protection. Many foreign countries have a policy of first to file in order to determine who should get the trademark. If someone else is using your trademark in another country, try “buying” them out in order to allow you to use the name of your trademark in that country.