Kind of, but technically, not exactly the same. The gray shirt designation means the kid delays his enrollment or does not take enough credit hours to be considered a full time student, they get no financial aid, and he does not compete or practice with a team, and thus their NCAA "clock" does not actually start yet and the player still has 5 years to get 4 seasons of eligibility in.
Alex O'Neill will be a full time student and will practice and be part of the team, thus, he will be a true "redshirt".
https://northwestern.rivals.com/showmsg.asp?fid=58&tid=211545865&mid=211545865&sid=901&style=2
Redshirts may or may not get a scholarship, but it mainly means they plan not to play, and thus retain all 4 seasons of eligibility. Every student athlete is entitled to take 1 redshirt season as long as they do not play in any games that year, or a medical redshirt of they play in few enough to qualify for the NCAA medical redshsirt rules.
http://en.wikipedia.org/wiki/Redshirt_(college_sports)