Safe Harbor for Cafeteria Plan/POP

[Guest afreeling]

I have been going through the new proposed regulations that came out on August 6, 2007, trying to decifer how the different compliance tests are performed as per 1.125-7. I am currently looking at the Safe Harbor testing under 1.125-7(e) and (f) and had a few questions. In looking at these two subsections of the code, it appears that there are 2 different Safe Harbor tests that a Plan Administrator will have to pass in order to be released of the burden of performing the Contributions and Benefits Testing as well as the 25% Key Test. I am trying to determine how these 2 tests interact with one another or if they are completely separate. Is one a Safe harbor from the C&B Test and the other from both? Also, can someone give me a few different examples to walk though the reguation based on 1.125-7(e) as to how this test actually works (The example in the regulation shows all 10 employees electing $8000 salary reduction, what if not all 10 elect to participate?). Maybe some examples of 1.125-7(f) would help as well. Thanks in advance.