I'm finally able to run Safari in full screen mode, thanks to a little InputManager plugin called Saft. Very cool. I now have Safari running full screen in desktop #2 on my 18-desktop VirtualDesktop setup. Works like a champ. It even drops the dock and menu bar out of the way (have to remember the menu keyboard shortcuts...)
Saft is a little, well, quirky. It's not fully integrated, and appears to do some funky patching of the running Safari app. But, it works.