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Al,
In reverse order to your questions. Matt and his guys had to grind off the powdercoating to weld in the new supports. They use a special chassis paint that has corrosion protection and will be very compatible with the powder coating in looks too.
I am assuming you mean rear camber? The BMW suspension set up has quite a bit of negative camber built in. Just look at any BMW. But, you may have springs that have soften and make it worse. I replaced the springs (all 4) on my car, had it realigned/balanced and it looks and works great. This may eliminate the slotting issue. Some of the earlier Backdrafts had springs that sagged over time. John's car may have suffered from that problem as well. I am not sure if that would apply to your car? I plan on replacing my Monroes with Bilsteins like John did to his car. This apparently is a tremendous step foward in handling as well!
I always thought that some sort of metal reinforcing piece (side to side under the dashboard) would be necessary to stiffen the chassis to eliminate flex, but Matt's solution seems to work well. I haven't ridden in John's car, but I know he is really happy with the results.
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