Brain Surgeon, I think your wrong about your definition of OPEN EVENT. Here is the clarification set forth by the NCAA in 2001 about this issue. Particularly note the line about redshirts being eligible (including an "open" event in which the collegiate competitors receive expenses from and/or score points for their respective institutions)
The NCAA News -- October 8, 2001
Legislative assistance
2001 Column No. 21
Open Events
Institutions should note that in order for a student-athlete who is seeking to "redshirt" to avoid using a season of competition (or for an ineligible student-athlete to avoid competing in violation of NCAA regulations and using a season of competition), the student-athlete may not participate in any event that meets the definition of "intercollegiate competition" in Bylaw 14.02.6.
However, a student-athlete seeking to redshirt or an ineligible student-athlete (for example, partial qualifier or nonqualifier serving a year-in-residence) may compete as an individual in an "open" event involving collegiate and noncollegiate competitors without using a season of competition (including an "open" event in which the collegiate competitors receive expenses from and/or score points for their respective institutions), provided the student-athlete represents only himself or herself, pays all of his or her own travel and competition expenses, does not wear any institutional uniforms or use any institutional equipment and does not score points for the institution. Therefore, if a student-athlete were to receive expenses from his or her institution to travel to and compete as an individual in an "open" event with the institution's team, the student-athlete would be deemed to have engaged in intercollegiate competition and to have used a season of competition (and, in the case of an ineligible partial qualifier or nonqualifier, to have competed in violation of NCAA rules), even if the student-athlete did not score points for the institution or wear the institution's uniform.
In order for a competition to be considered an "open" event, the competition must be open to noncollegiate competitors and must be organized, publicized and operated as an event that is open to individuals other than collegiate competitors. Pursuant to an official interpretation [reference: 5/8/95, Item No. 1], a student-athlete who participates in an open lane as part of a collegiate competition (for example, a dual meet) is considered to be representing the institution against outside competition, regardless of whether the student-athlete's performance is included in the scoring of the competition. For example, if five institutions competed in an invitational cross country meet or swim meet that was open only to those institutions, the competition would not be considered an "open" event. If a redshirt student-athlete or an ineligible student-athlete from any of the five participating institutions were permitted to compete in the meet (even as an "unattached" participant not scoring points for his or her institution), the student-athlete would be considered to have engaged in intercollegiate competition under Bylaw 14.02.6 and would be charged with the use of a season of competition. In addition, if the student-athlete were an ineligible partial qualifier or nonqualifier, the student-athlete would be considered to have engaged in intercollegiate competition in violation of NCAA rules.
This material was provided by the NCAA membership services staff as an aid to member institutions. Institutions may direct questions regarding this column to Damani Leech or Brad Hostetter at the NCAA national office.