Hi Bajan
The JAA wording is similar to the quote KK posted. The crux of the matter is that if you don't artificially restrict the view of the pilot then you are not simulating instrument flight!
If you are not operating with foggles/screens etc. to limit the outside cues then you can always look up. The safety pilot is there because the guy behind the screens can't look up.
As I say, I have no knowledge of FAA rules so could be talking rubbish.
Cheers
TeeS
Edit - just seen your header that you are talking about VFR only helicopters - not sure my comments are applicable or not. I still think the rules that would prevent you carrying out the procedure are not the ones you are quoting. e.g. is the helicopter allowed to fly IFR in controlled airspace? I will leave it to someone more up to speed with the FAA rules.