Ok, dumb numbie question. What happens when a person holds a odd number of shairs and a stock splits 3:2? Does that shair holder get the rest in the form of a cash dividend?

It has been my experience that fractional shares resulting from a stock split are "sold". The stockholder does report it for tax purposes as a sale.

This is correct...cash received in lieu of fractional shares is treated as a sale and reported on the capital gains Schedule D. If you hold the shares through a broker, the broker will pool the fractional shares, sell them and record the cash in your account 3 days later.