Since he qualified for the Olympic team in 2008, he can actually get an activities waiver for the 2008 season which would extend his 5 year clock to 6 years. It is essentially the same rule that allows some international athletes a 6th year.
So, not sure if this rumor is true or not, but he could technically use activities waiver for 2008, redshirt 2009 and be a senior at Oregon Spring 2010.
From the NCAA Manual:
Extensions of the five-year period of eligibility for
student-athletes...shall be based on the following criteria: The member institution in which the student-athlete is enrolled must establish to the satisfaction of the Committee on Student-Athlete Reinstatement (by bjective evidence) that the student-athlete was unable to participate in intercollegiate athletics as a result of participation in one of the activities listed in the above legislation for a specific period of time. Further, such an extension shall be limited to one time and for a period not to exceed one year per student-athlete, per sport.
The activities "listed above" were World Champs, World Cup, World Students, Pan Am or Olympics Games.