I think you just made timr's whole point. You could have just said "the UX guy runs the observational research and supervises wireframing and usability testing" but that just doesn't sound like a FTE.

For what it's worth, my experience matches timr's: if you get a developer and a designer to each read "The Design of Everyday Things" you'll get further and go faster than you would by adding a full time UX expert that can't design or code to the team.