wOw . . .what a LOT of hassle for a $200 bike. . . .
In my limited experiences with DMVs across the country (have lived in several different states) I would have to say that I would NOT give them any 'ammo' to work with to make your life hell. . .lol. They will try and nickel and dime you for every paperwork cost imaginable, with you likely still losing the bike, the original owner not even hearing about it, and the bike seized by the state to later be sold at auction a year later. I'm all for obeying the law but there are just some times where you don't want to tell 'the man' the whole story... .
If the bike was stolen, it likely was many moons ago and is a totally different bike by now (age, parts swaps, etc) and what good it would do to anyone previously involved by now is minimal at best, I would imagine. . . .
DOOD. . .buy another frame, switch what ya need, and be done with it? I mean, I see frames all the time for under $100 - totally papered. You could do it in a week! You will spend that much time just talking to DMV clerks that are utterly clueless about motorcycles explaining the entire case over and over and over and over and. .. . . .