The Vermont deal was well known a few years ago, but word was it got shut down. I guess that's not the case? Could be that I'm thinking about folks who used it as a way to title an off-road only bike for the street though. If you do that here in Nebraska now they will run the VIN and you are hosed if it comes up off road, regardless of what paperwork you have from another state. It kinda depends on who you get at the DMV though. Some of the rural counties are more lenient.
In many states you have to do a "bonded title" deal that's so much hassle/expense it's not worth it...
The other thing I run into here in Nebraska - anything that doesn't actually have pedals on it is a motorcycle, regardless of displacement. So any 49cc scooter without pedals has to be registered/insured as a motorcycle and requires a motorcycle endorsement on your license. To be a "moped" it has to have pedals and be less than 50cc.