I've been off-line for a year or more now, so this may be old news. Took the car to the inspection last Wednesday. It passed, but I was informed that the rules for 2008 inspection are changing.
Specifically:
"Kit Kars
Vehicles have to meet the emissions standards for the year the vehicle is assembled. Vehicle manufacturers have to certify that their vehicles meet EPA emissions standards. A lot of kit car manufacturers also comply with this requirement. If you purchase one of these kit cars, follow the instructions on assembly, including the emissions components, you should be able to pass an emissions test just like any other new car.
Just as the EPA does not allow an individual to reverse engineer a vehicle to defeat emission standards, they do not allow an individual to build a brand new "old" vehicle to bypass emissions standards. It is possibe if you actually use old parts (like a 1965 engine, or complete 60s frame and powertrain) that the vehicle will be registered as that model year (replica), but this is a TXDOT issue. However it is registered, is how DPS inspection stations will test it.
"
Check their site at:
http://www.txdps.state.tx.us/vi/misc/faq/engine.html
Good Luck