About a year ago i did a fair bit of looking into the HID situation in Qld. I can't be bothered looking up the references, so i'll just go off my memory. There were a few things that were required for HIDs;
1. self levelling/auto adjusting lights - means that when you put a load in the back causing the front to point upwards, the headlights automatically adjust down to point in the right direction. This can be achieved by leveling of the bulb within the lamp housing, or auto leveling of the suspension. Manual adjusters are not acceptable.
2. sector limit on illumination - if you shine factory HIDs at a wall you'll notice they have a clearly defined upper limit.
3. lamp housing - you'll notice that factory HIDs are generally fitted in lense style housings. This helps with the sector limit. Aftermarket bulbs often just plug into reflector style housings, and are often the ones that dazzle other drivers. The lamp housing should have a marking on it which indicates that it's approved, as well as what bulb type is approved for use. If it's not approved for use with HID bulbs, then it's not approved. I think this is where most mods fall down. Even if they do everything else, it's still non-compliant if the lamp housing isn't approved for the bulb that's inside.
4. Light washer - I'm a bit iffy on this one, but i think i recall a requirement for HID lights to have headlight washers installed. Not sure if it was required to be included as part of a mod (installing HID lights), or if it was a requirement to keep it when doing other mods (fitting of a bull bar that isn't set up for head light washers).
Most factory fitted HID headlights will look like small but bright points of light from every angle except directly ahead of where they're pointing, but you shouldn't usually see that if they're angled correctly. You may get a quick flash if the car goes over a bump. The aftermarket HIDs are usually fitted into reflector housings and look like a glaring bright light visible from wide angles.
Ultimately, when a car is manufactured, it gets signed off as being compliant with ADR's (or given an exemption). Modifications to the car come two basic forms. That is, those needing approval, and those that don't need approval. Check the National Code of Practice (or whatever version your state is running) section of vehicle modifications for a pretty straight forward guide, then read the ADR's for the nuts and bolts.
My advice to most people is just because you can buy it, doesn't mean it's legal to fit it. Also, show consideration to other road users. There may be a bunch of inconsiderate pricks out there who speed, weave, and piss off everyone, but is that any reason for you to join them?
Also, fog lights are only allowed on (in Qld) when visibility is restricted by fog. In my opinion they're almost as bad as aftermarket HIDs because of how dazzling they can be. Some are so bright that drivers don't realise they don't have their low beams on. Most people have no idea of this rule (or even how to turn them on or off) and drive around with them on all the time. Police just don't usually enforce the rule because there are so many other things to do. There are limits on how intense the lights can be, so fitting HIDs is probably not legal.
I hope this has been helpful. I'm a bit strung out at the moment, and it's been a while so some of it may not be 100%, but like i said, if you're doing a mod then you should be looking up the rules for yourself, not relying of what you read from someone on an internet forum. A copper isn't going to car that "mickmac42 told you it was okay."
Mike