Code Section 408(e), as amended by P.L. 109-280 applies to distributions after 2007. As ameded, the restrictions you mentned will no longer apply to distributions (after 2007). It can be done--
QUOTE
Sec. 1.408A-10 Coordination between designated Roth accounts and Roth IRAs
Q-1. Can an eligible rollover distribution, within the meaning of section 402©(4), from a designated Roth account, as defined in A-1 of § 1.402A-1, be rolled over to a Roth IRA?
A-1. Yes. An eligible rollover distribution, within the meaning of section 402©(4), from a designated Roth account may be rolled over to a Roth IRA. For purposes of this section, a designated Roth account means a designated Roth account as defined in A-1 of § 1.402A-1.
Q-2. Can an eligible rollover distribution from a designated Roth account be rolled over to a Roth IRA even if the distributee is not otherwise eligible to make regular or conversion contributions to a Roth IRA?
A-2. Yes. An individual may establish a Roth IRA and roll over an eligible rollover distribution from a designated Roth account to that Roth IRA even if such individual is not eligible to make regular contributions or conversion contributions (as described in section 408A©(2) and (d)(3), respectively) because of the modified adjusted gross income limits in section 408A(b)(3).
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