A C182 TRAINEE AND INSTRUCTOR ON FINAL TO RWY 18 AT OXC EXECUTE A PLT INITIATED GAR DUE TO A PA28 PAST THE RWY HOLD SHORT LINE.

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WHILE ON FINAL APCH; I NOTICED AN ACFT ON THE E SIDE OF THE RWY THAT WAS COMPLETELY OVER THE HOLD SHORT LINE. I TOLD MY STUDENT TO GO AROUND AND RPTED TO TWR THAT THERE WAS AN ACFT COMPLETELY OVER THE HOLD SHORT LINE. THE LCL CTLR THEN CAME ON TWR FREQ AND SAID; 'THAT HOLD SHORT LINE IS FOR LARGER ACFT AND THERE IS NO PROB.' I WAS UNDER THE IMPRESSION THAT A HOLD SHORT LINE IS MEANT FOR ALL ACFT AND THAT IF AN ACFT; EVEN A SMALL ONE (PA28) IS OVER THE LINE; YOU SHOULD GO AROUND. TWR NEVER ADVISED US THAT THE ACFT WAS OVER THE LINE AND TREATED THE EVENT AS A NON ISSUE. THERE WAS A GOOD AMOUNT OF CONSTRUCTION AT THE ARPT AND TAXI RTES TO THE RWY WERE A BIT UNORTHODOX. IN ANY CASE; THIS APPEARED TO BE A RWY INCURSION; PLAIN AND SIMPLE; AND TWR SIMPLY IGNORED IT. A HOLD SHORT LINE IS A HOLD SHORT LINE; NO MATTER WHAT ACFT IS HOLDING AT IT! SUPPLEMENTAL INFO FROM ACN 640988: AT APPROX XA15 ON SAT/DEC/2004 I LANDED A PIPER ARCHER ON RWY 18 AT OXC. TWR HANDED US TO GND AND WE WERE CLRED TO TAXI ON TXWY B BACK TO THE APCH END OF RWY 18 AND HOLD. AFTER HOLDING FOR A SHORT WHILE WE WERE CLRED TO CROSS RWY 18 BY GND CTL. I COULD SEE THAT AN ACFT WAS ON FINAL SO I IMMEDIATELY STARTED TO CROSS AND ACKNOWLEDGED THE CLRNC. GND THEN CAME BACK IMMEDIATELY AND SAID TO HOLD SHORT. I STOPPED WHERE I WAS AND INFORMED GND CTL THAT I WAS OVER THE HOLD SHORT LINE. GND CTL SAID THIS WAS NOT A PROB SINCE THE HOLD SHORT LINE WAS SO FAR FROM THE RWY. THE ACFT ON FINAL ABORTED THE LNDG AND WENT AROUND. SINCE I WAS ON GND CTL FREQ I HAD NO KNOWLEDGE OF ANY EXCHANGES WHICH MAY HAVE TAKEN PLACE ON TWR FREQ. AFTER A TKOF AND; I BELIEVE; A LNDG I WAS CLRED TO CROSS RWY 18 AND PROCEEDED TO THE MAIN RAMP.