http://www.faa.gov/fsdo/orl/forpilot.htm
...says there is a complete, yet temporary(?), ban on the FAA offices (FSDOs) issuing FAA Private Pilot Licences on the basis of Foreign Pilot Certificates.
All the DPE's (Flight Examiners) in the area - that were tasked with doing this job, post 9/11 - have been contacted and told to stop doing conversions WITH IMMEDIATE EFFECT.
No news, just yet, as to whether an ICAO licensed pilot may take the FAA check ride for a full, stand alone, licence (without doing a course of training).
This ban, apparantly, applies to all FSDOs nationwide.