Your client has two options. He can apply for a special extension of time (until he meets the time requirement) to file his return or he can file without the exclusion and amend the return when he does meet the time requirement. You can find that information and additional instructions on Form 2555 here: http://www.irs.gov/pub/irs-pdf/i2555.pdf.
So...let me get this strait.....lets say we file with the extension for it is 2 to 6 months..August we would be when he is eligible for the Physical test, we would then plug the dates of 8/6/11 to 8/5/12onto the F2555 and he can excude the 2011 income?
You need Form 2350 (http://www.irs.gov/pub/irs-pdf/f2350.pdf) to file for the special extension. Once he meets the qualifications for excluding his income, he may file Form 2555 and exclude the 2011 income.