USA Today has a good roundup about just how duped everyone really was. I really don't think that much was staged. You can buy some drinks, but what the people do is up to them. Good thing they got their $200 for it:
But Arthur did a little research. Thinking Borat was Muslim, she greeted him with deference. “Women aren’t supposed to touch men in public, so I didn’t make physical contact,” she said. She put Borat on the air with anchor Brad McMullan, she said, “and then things went haywire.
“He started acting crazy. For a minute I thought he was going to open his shirt and pull out a gun. I thought, oh dear, I’ve let a lunatic in.”
Arthur tried to abort the live interview and switch to a commercial, but there was a problem. “The equipment had frozen up. We tried to do it, but couldn’t.”