Not quite.
It says that the candidate must have a plurality from 5 states before he can be placed in nomination. It does not say that such a plurality must come from the primary process.
To wit: if there is no winner on the first ballot (and for the sake of argument, let's assume that Newt isn't on that first ballot), and delegates are freed from previous commitments, it is possible for the math to change in such a way as to make Gingrich eligible before a subsequent round of balloting.
Except, the nomination process happens before the first round of voting. I really need to read the rest of the rules. It sounds like they created a nightmare in their ivory towers.
I finally had time to translate rule 40 from politico speech to English. Anyone can be a candidate if they can get the plurality of each of five states to support their candidacy. It does NOT preclude Newt, or even Palin, from being nominated if they can get five state delegations to support them. It has nothing to do, that I can see, with who the delegates might be bound to support. That was the piece I could not find last night.