7Stroke, you're right, the non-flying pilot can't log the time if they only hold a private certificate. You have to move up a couple certificatges to do that.
What you have to remember is the FAA draws a line between "being the PIC" and "logging PIC time." As to logging the time as a safety pilot, there's no reason to talk to a FSDO, the FAA Chief Counsel has published a bunch of letters on it.
http://www.faa.gov/about/office_org/...9/Speranza.pdf