@Cooter, that's correct. It's not about difference in temperature between locations, it's difference in temperature versus standard. Hotter than ISA, and you're higher than expected. Lower than ISA, lower. The difference between indicated and true altitude is essentially zero sitting on the ground at the airport. As you go higher above the airport, that's where the difference increases drastically. And it IS enough to be substantial - at 5000 feet above the airport elevation it would not be unusual to see a 200 foot difference with just small deviations from ISA. Large deviations cause larger errors.
@mtuomi, I recommend the Pilot's Handbook of Aeronautical Knowledge, page 8-4, for a very brief synopsis of this scenario.