"(7) During the flight-testing phase, no person may be carried in this
aircraft during flight unless that person is essential to the purpose of the
flight."

This is the exact wording from the FAA order 8130 and echoed in the Advisory
Circular 20-27E to be placed in the Operating Limitations for Experimental-
Amateur built Aircraft.

There is no FAR that prohibits such Legal and certified training.

In regards the recent training in Tom Byrnes LIV by Charlie K.-- The
Insurance underwriter not only mandated that this training take place, but
covered the plane with full liability and hull insurance from the first
flight.

Charlie K.,