The logging PIC issue has been beat to death, however in this case...MEI 2 will be sole manipulator of the controls and is rated for the aircraft, so can log PIC. MEI 1 is acting as a required instructor, so can log PIC. However since MEI 2 isn' t receiving any true instruction it seems that actually logging dual given would sort of break the rules in that direction. 61.57 states that an instructor can log all time as pic while acting as a required instructor, but only states in (h) Logging training time that only that training recieived needs to be logged.