got an update for anyone who gives a damn :-)
They (school) faxed me an "opinion" from the german CAA (LBA) about an inquiry they made regarding intro flights - dated 2010. Apparently Intro flights fall under the category of "training programs" and thus require a medical in hand before flight. If it weren't for this official "opinion", the LuftVZO para. 24 would read like any other regulation found in EASA or FAA books about who can pilot a plane.
Now a 60 euro medical ain't the problem, but i'm still not giving this school my money - literally calling me a smart ass for inquiring.
Next question - am i inducing correctly out of the above posts that its only this dumb in germany?