Re Licencing N reg flying in Europe:
I guess I screwed up the links, but if you copy and paste you will find two letters from the FAA confirming the exact situation regards to flying N reg aircraft in Europe if the pilot does NOT hold an FAA license.
http://www.faa.gov/about/office_org/...rpretation.pdf
http://www.faa.gov/about/office_org/...rpretation.pdf