For a kid entering a D1 school now, I don't think there is technically still something called a 'partial qualifier'. You're either a qualifier or a non-qualifier. If you're a non-qualifier, an institution may request a waiver, which might be partially (can practice and/or receive an athletic scholarship, but not compete) or fully granted (eligible to compete). In Oto's case, it sounds like the Clearinghouse has been agreeable with the idea of a partial waiver for some time, but we've been looking for more... however, the prospects of him being eligible to compete in 2010-11 sound horrible after this latest response. The question is 'what would the U and Oto like to do now'?
It gets down the specifics of each case, but in some cases, the Clearinghouse can't accept some of previous courses a student-athlete has completed and thus they do not meet the initial eligibility requirements. But... the kid's grades may be at the top of his class... also see waivers granted where there are learning disabilities... and for other reasons.
It's not overly burdensome on the student-athlete, but a point worth making - with non-qualifiers, if they are good to go the following year, they only have three years of eligibility remaining (and in that regard, it's different than just 'taking a redshirt'). However, they can earn back a fourth year if they have completed 80% or more of their work towards their degree (which, after 4 years in school, you would hope is doable).
BTW, it wouldn't surprise me if Jacob Thomas goes to LBSU this year as a non-qualifier (but won't play until 2011-12) and gets things right.
You'll hear a lot of people still say 'partial qualifier'... and in essence, that's what some kids are, even though the technical term is gone for kids entering D1 now... I can think of one pretty good one last year.. DeAndre Kane... was a Duquesne commit, then later he was headed for Seton Hall (btw - there were some developments in Gonzo's man-purse theft case yesterday.. looks like he'll get off in good shape.. easy plea, or PTI), but wound up at Marshall and had to sit last year. Marquette was in the mix a little with him... and actually had a pretty nice partial qualifier several years ago... young man by the name of Dwyane.