Dan,

Regarding the BFR by a CFI that may not be legal to fly PIC (how's that for acronyms):

The FAA allows a CFI to train, give BFRs and other CFI duties as long as the other pilot is the PIC.

For example, you need a review this month, but have not exceeded the 24 calendar months. I am have a condition that prevents me from doing any PIC flights. I can administer a flight review as long as you're acting a PIC. If you're over the 24 months, I cannot do the review, since I cannot act as PIC.

The generally accepted thought is that the FAA wants to allow CFIs to continue to instruct and otherwise assist the safety of the pilot population even if they personally cannot exercise the privileges.

Mike