I updated this info elsewhere as well.
1) Reconstruct package is still in play.
2)When the car is complete, you have to fill out a form to petition the court to declare that you are the actual owner of the vehicle.
3) Then you apply for the title.
4) Safety Inspection required. Keep in mind that they require that things like brake fittings be "Automotive". Since no manufacturer uses AN fittings, they would be cause for failure if they see them present. That applies to all "Safety" related items. Lights, directionals, etc. must all be SAE or DOT approved. Windshields must have id etched in the corner of the windshield, etc.
5) Emissions are from the year of the donor Engine.
6) Homebuilt Chassis are allowed, but with any chassis that is welded on, you must provide the name and address of the person that did the welding.
7) The "Foreign Titles" unit handles the inspection / paperwork. You can go to Wesfield or Asbury Park at this time.
This is IMPORTANT! Regardless of what you do about receipts, make sure that if someone gives you a receipt, that they ACTUALLY PAY the sales tax to NJ. This kind of a thing can easily trigger an audit of your pal, and if they find that he is doing something, well, left of the law, they will enlarge his sphyncter large enough to park your 7 in! Don't ask how I know....
All that being said, I have found that the guys at Asbury Park have been very helpful in all of this. If you have a question on an interpretation of the requirements, call. They have helped me put a bunch of things in order. I'd recommend going there if you can.