The answer is yes - provided all of the routers involved in the configuration are running an IOS that is capable of recognizing the OSPF on-demand capability. See the following URL for a description of how this was used to solve a problem for a large-scale OSPF/ISDN backup network -
http://www.cisco.com/warp/public/104/23.html. Also, if you look at the following URL, it will help you troubleshoot your problems with OSPF on-demand: http://www.cisco.com/warp/public/104/dcprob.html.