With the introduction of some of the eastern European countries(check
internet for details) to the European union in 2004 , it is now
possible to transit these countries without a visitor visa & with a
Deutsch residence permit (Residence permit issued by any of the Schengian countries).
I successfully completed the trip Munich - Prague - Krakow(Poland) - Slovakia - Budapest (Hungary) -Vienna ---Munich.
I did not face any problems during this travel but there are a few conditons which need to be followed as per the 'Transit Visa
Guidelines'
1: The entry & exit has to be a different country. E.g. If you are
entering Poland from Chz Republic the exit has to be a different
country e.g. Slovakia. If you turn back from Poland to Chz Republic I
am afraid questions can be asked & might be troublesome, not at all
advisable.
2: The maximum of 5 days is allowed during the transit per country.
3: It is strongly advised to have pre booked railway tickets of
forward journey from Deutsche Bahn or by Air.
Also advised is confirmed hostel/hotel reservation or email
confirmation & medical insurance. I was not asked any of these but it
can be asked since you will be on transit. Also keep a photo identity
other than you passport like pan card, company id etc. I was asked for
a proof during entry to Poland.
Poland & Hungary is very beatiful and I would suggest to visit these
countries with this opportunity.