I agree with the approach that mtv has outlined. When I do FRs, I don't want to hear the rote memory answers to the questions. I want to see that they understand the how and why behind the answers. It has been my experience in both the ground and flight portions of the FR that most people can get from point A to B when all goes well. The abnormal things, like no flap landings, power-on stalls, simulated engine failures, etc., they don't practice on their own and, in many cases, they haven't done since their initial instruction.
Same goes with knowledge of regs, airspace, etc. They know how to get from their usual point A to B in class E airspace, but have forgotten, and probably never really understood why airspace is designed the way it is, how that affects them even as a VFR pilot, and what it means to how and when they operate an aircraft. Let's face it, the majority of pilots, I believe, forget most of what they initally learned because they don't use it...or never understood it in the first place.
All of this equates to instruction needing to be done. Remember the saying, "A good pilot is always learning" (which applies to the instructor as well as the student). In the end, I have to feel comfortable signing him/her off. After all, I am assuming some liability when I put my name in his or her logbook.
As mentioned before, I have the minimal stuff I will cover. I ask them to let me know if there is anything specific that they would like to cover so that I can tailor it to their needs as well. If they aren't an AOPA member, they will be subjected to a short spill on AOPA. One thing that I try to stress is the varying places one can get up-to-date TFR information and the importance of being aware of the different events that can trigger one in our region of flying. As mtv said, there is alot to cover and unless the person receiving the FR is really on his/her game, it will be considerable more than 2 hours total. As with most FAA numbers, that is a minimum number.
