The only thing I've seen happen in the (3?) times they gave free time (10 days once I think, 15 days twice I think?) to accounts that were lapsed and hadn't logged in for X days, is that people log on all the random ftp accounts they made and never used, spent their loyalty points on platinum, and (when it was active), claimed 5 free LoN locked booster packs. Never saw anyone actually come back for one of those promos. I'm sure someone did.
We used to get on the older forums, people complaining every expansion about "where's my free 30 days!?!?!" anytime someone bought an all in one to catch up (like Titanium), because the box says 30 days free (and in small print, said, for new accounts only).
Did he try logging in during the time the last 24-48 hours the login was Wonky? That might be the reason. He should try again.
A sub is not required to play on either the Test server or the Beta server. This is only true for EQ1; EQ2 requires all access to play on its test server, and I don't know about their betas because I've never done it. Once the new pre-purchased expansion is live, you can play its content on any live server, but you will be subject to all the other F2P endgame restrictions if you don't sub.
A betabuffed char is able to use Prestige items regardless of your account. I think that answers the question.
