PT Pine. you live in TX I assume? let it sit outside for a few days (or about 45 seconds if you live in S. Texas) and you can stain it. Done it plenty of times, always looks great.
If you are truly worried about any chemicals from the pressure treatment, just don't buy the wood from the bottom of the stack that is soaking wet.
Also, look at some 5/4 board for decking. make the frame from a couple 2x's, seats and table top from decking. Probably cost ya $30 bucks total. if you are worried about splinters, select quality boards first and then once it's done run a palm sander with a medium grit. Personally, i wouldn't worry about even doing that, but it'd take 5 minutes.
[This message has been edited by DwightSchrute (edited 8/31/2011 9:40a).]