Steve I guess I was thinking of the options and got them mixed up. Hey- It happens. Thanks for making that neutral/ground thingee clear.
I'm reading in the NEC at 340.108 and 340.112 and 340.116 of the '05 edition and I get the impression that the bare conductor is not considered as insulated but only as contained in the sheath which doesn't qualify as an insulated as described in 340.112. IMHO I know there is something in the UL white book about the insulation on NM cable conductors and the sheath but I can't really find anything along those lines for UF cable.
As for approaching this as a xformer application, with a 240v. supply to the primary and a 120/240v. secondary he could use a 7.2KVA xformer if they made such a thing and it may or may not be adequate. He would need a grounding electrode (probably a rod or two) and sub panel with a main in it.
