If anyone is wondering what the real FAA rules are in regards to rockets, it can be found in part 101 of the FAR. But warning ... these are not suggestions, these are federal laws, which are 1 tick below the laws of the us constitution. This should end the guessing game. Also FAR rules to do not "trump" advisory circulars. If anything it would be the other way around because they are special provisions above and beyond the laws of the FAR, no different than an amendment to the constitution.
FAR 101:
http://ecfr.gpoaccess.gov/cgi/t/text...3.15.3&idno=14