[DrC]

You said "Note that (g) itself states: "This proviso shall be applicable to persons born on or after December 24, 1952, to the same extent as if it had become effective in its present form on that date;""
IANAL either, but note that earlier in (g) it states "Provided, That any periods of honorable service in the Armed Forces of the United States, or...."
I think the operative word in what you have quoted is proviso. I'm pretty sure it references only the portion of paragraph (g) that begins with "Provided." See http://www.state.gov/documents/organization/86757.pdf if you care to read more than you ever wanted to know on this topic.

[Gondring]

I think the operative word in what you have quoted is proviso. I'm pretty sure it references only the portion of paragraph (g) that begins with "Provided."

Agreed. Although I think you're missing my point. That proviso would be totally irrelevant for even the people needing credit for military service if the whole thing truly referred to only post-1986 births.