DURING PRACTICE AUTOROTATION; R22 PLTS ARE UNABLE TO COMPLY WITH CLRNC AND TAKE EVASIVE ACTION TO AVOID ANOTHER LNDG HELI AT LWM.

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ATIS RPTED TKOFS AND LNDG USING RWY 5. ANOTHER HELI BEHIND US RPTED INBOUND FROM THE SW AT 10 MI. UPON INITIAL CONTACT WITH TWR AT APPROX 8 MI TO THE SW; WE REQUESTED A LNDG AND WERE TOLD TO RPT A 2 MI L BASE FOR RWY 32. UPON RPTING THE L BASE WE WERE GIVEN A CLRNC TO LAND AND TO HOLD SHORT OF TXWY A; WHICH WE ACKNOWLEDGED. WE THEN REQUESTED A PRACTICE AUTOROTATION. THE TWR INITIALLY SAID NEGATIVE; HE HAD ANOTHER HELI LNDG BEHIND US; THEN HE TOLD THE OTHER HELI TO TURN R BASE FOR RWY 5 AND CLRED US FOR THE OPTION. WHILE PERFORMING THE AUTOROTATION; WE DETERMINED THAT IT COULD NOT BE COMPLETED SAFELY AND WE NEEDED TO GO AROUND. AT THAT TIME; THE TWR SAID THAT WE WERE TOLD TO HOLD SHORT AND SIMULTANEOUSLY I SAW THE LNDG ACFT ON RWY 5 AND REALIZED THAT WE WERE IN DANGER OF COLLISION. I TOOK THE CTLS AND BANKED ABRUPTLY TO THE R AND DID CROSS OVER INTO THE RWY AT ABOUT 50 FT. WE THEN LANDED ON TXWY A ADJACENT TO RWY 5. PRIMARY CAUSES: 1) WE SHOULD NOT HAVE REQUESTED A PRACTICE AUTOROTATION WHEN THERE WAS A HOLD SHORT LIMITING OUR OPTION TO GO AROUND. 2) WE SHOULD HAVE MAINTAINED BETTER SITUATIONAL AWARENESS REGARDING THE TFC LNDG ON RWY 5. 3) THE CTLR SHOULD NOT HAVE ISSUED A 'CLRED FOR THE OPTION' CLRNC WHEN WE IN FACT COULD NOT EXECUTE A GAR SAFELY DUE TO CONFLICTING TFC.