I don't think that first-year students should counsel on OTC stuff, since it's just not possible for them to know what questions to ask and where to look for answers should they not know.
However, I think it's very important that the student is familiar with OTCs and is aware of details associated with specific OTC meds, so that they can alert the pharmacist to potential problems. For example, we had a lady come to our counter this afternoon asking for a recommendation on something for a cough, stuffy nose, and sore throat. She had a box of Coricidin HBP in one and a card for Tylenol Cold "Daytime Severe Congestion" in the other. Before she could even ask, "Which should I take?" I asked her about possible BP issues, and found out that she was taking Toprol XL for tachycardia. I then grabbed the pharmacist ASAP.
Before anyone jumps all over me, I want to stop and point out that whenever a patient stops me and asks a question about an OTC product, I never specify whatever jumps into my head, even if it seems obvious to me after talking to the patient about symptoms/med history. I know better; I know I don't know ANYTHING about how drugs work, and I conduct myself as such because I know that if I say something, and the pharmacist doesn't get to talk to the patient right away, (s)he may walk over to the shelf, grab the item and walk off before the pharmacist gets a chance to even make eye contact with the patient. Generally when the pharmacist makes recommendations to a patient, we're a slow enough pharmacy that it usually becomes a three-way conversation between the patient, the pharmacist, and myself.
Again, it's all dependent on what you know, how comfortable you are with what you know (and when you can recognize that you're in over your head), and how comfortable your pharmacist is with the idea of you counseling (i.e. recognizing that you know your limits and will come get them when you don't know the answer to the question).
My pharmacy manager used to teach, and he and I have already had discussions on the counseling thing. He said his experience as a teacher is that because counseling is such a big deal, and very few people rarely feel comfortable at first (especially with lots of new knowledge), it's important to start slow with what you know and gain confidence. He has told me, like All4MyDaughter's pharmacist, that, IF I FEEL COMFORTABLE DOING SO, it is within my scope of experience and knowledge to discuss with patients about basic things, like unwrapping suppositories before use and staying out of the sun when taking doxycycline.
Also note that the conversation never ends with me talking to the patient; regardless, I still unfailingly ask "Are there any questions about your medication that you'd like to discuss with the pharmacist?"