Dusty_B, the point I am making is that one is exempt from the 500 ft rule when taking off and landing in accordance with normal aviation practice. What is normal? Surely commencing a turn after take off at 100 ft is somewhat abnormal? It may be the safest course of action but does it comply with Rule 5?
nonradio, I agree that it does not says "never" turn below 500 ft but I am talking about what is desirable in the context of teaching ab initio students to fly. Expecting a low houred pilot to conduct this sort of maneovre is increasing the odds of loss of control which is far more likely to cause loss of life compared to climbing ahead "normally" and getting close to a few houses.
The arguement put forward so far make me think that we should not use this runway for departure for flying training.