Helping Kevin to answer while waiting for him to come on board as I have some information regarding this project.
1. YES & NO. Red car has got complete documentations but is not healthy enough to be driven to Puspakom & JPJ for ownership transfer. Once car is done, it will be driven to Puspakom for inspection (ownership transfer & engine transplant). Silver car is purchased without any documents as it was meant to be a donor car (for salvaging parts - of which some were absent in the red car, such as interior trims, 5 lugs conversion etc)
2. As of now, NO but it will qualify next year as the red car is 1987 registered.
3. As of now, NO but once everything is done, 2 cars will become 1 car (take parts from silver chassis to complete red chassis). Red car will be registered under his name and silver chassis will be disposed of (whatever remains of it).
4. YES, that is the current status quo. Hoping to get support from fellow forummers here to change that...