Similar to as above – You can’t do EASA ab initio training on N Reg in EASA states as you would need to be a licence holder to fly the N Reg aircraft for the solo portions. I understand the Oxford students have to hold dual medicals for the Arizona integrated course solo elements likewise.
I have no idea about the current (EASA) situation, but ab initio in N-reg was possible in Austria. This may also have been pre-JAR (Austria joined relatively late).
It was possible in the UK too, in 2004 when I got a US Student Pilot Cert issued by my UK based FAA AME 
It just wasn’t ever legal.
I was legal because I always had valid papers to fly the plane in question, one way or another. But someone doing it ab initio would not have been. However I doubt anybody did an FAA PPL here like that.
This isn’t related to JAA. It is just there is no way to do the solo bits. The PU/T bits are easy – the FI is PIC and the flight is always legal.
