You guys can continue to quote scripture if you want, but it comes down to the rule being prescriptive, or open to interpretation. It can be used to determine a proper course based on the specifics involved. In this case, the decision to suspend Masoli was NOT an NCAA punishment, but one given by Oregon itself. True. However, the punishment was rendered to satisfy the NCAA, and thus the NCAA didn't pursue it further.
My statement in which the NCAA feels that Masoli was transferring and utilizing this rule against the spirit in which it was intended, meant that the NCAA felt that Masoli was skirting his punishment at Oregon and simply said that he's not going to receive the special permission necessary to play this year at Ole Miss. They did not, as many did not believe that this was purely an academic move.
With all that said, I agree with Chizad, that this matter certainly could have been handled cleaner and quicker, but it is what it is.
Fuck Ole Miss.