Hmmm. This is interesting - from the website that Roscoe posted.
http://www.njreplicar.org/back/back_art.cfm?ID=128
The article supports the fact the kit cars CAN be registered as collector cars.
I don't know why the DMV guy told me that this was not possible with kit cars. Oh well, as said earlier, there is a lot of conflicting information coming out of NJ DMV.