"Smog and registration for CA is based on donor car."
Not necessarily. If you use a VW pan, they should register the car as the year of the pan. If you get some anus, they may try to make you register as a 2003 specialty car; there is no way you smog any decent engine. (As the very old song goes, 'Shop Around!) There is a 'side door' where the State of CA will license a few hundred specialty cars per year as 'old cars with smog criteria as of the engine year.
If the frame does not have a VIN, the State of CA will attach a VIN and you will probably be a 2003 specialty car. A friend of mine found a tube frame car with a VW VIN. He has no clue, nor do I. He drove that there sucker down to the DMV and managed to drive away with a title based on the VIN. (Note: If YOU change the VIN, it is a felony crime in most states. However, in many rural areas, there are people who have no knowledge of older air-cooled VWs. If you are polite and friendly, who knows what may happen?)
The IM Speedster is, IMHO, the top of the line; check the prices. Either the JPS or VS Speedster is a good, reliable unit with manufacturor support.
If he starts with a rolling kit, A non-auto mech who is very handy with tools can ASSEMBLE a Speedster. Building a hot VW air-cooled engine is somewhat more difficult than you might think. I would contact CB Performance on the west coast or Jake Raby in the east. I would have an engine/trans/diff built for me.
Always obey the law and drive safely!
Just my $.02 worth.