There can still be mandatory passport checks at internal borders even with Schengen. This is a while ago, but back in 2001 I crossed the border from France to Italy a few days before the G8 summit in Genoa [0]. Passport checked, questions asked about itinerary, and a French couple on a motor bike was turned back due to not carrying their passports.

On the other hand, that is the only time of quite a few crossing where this have happened.

[0] http://en.wikipedia.org/wiki/27th_G8_summit

Getting into Shengen is where you encounter the friendly border people. Once you're in, you can get around as you please.

He gave examples where he was already in Europe and crossing borders. (eg Germany -> Italy)

I'm "he". And I was entering Shengen in Germany and then flying to Italy within the zone.

Ahh ok. That makes more sense now. Sorry :)

No problem. It's confusing.