I hate to clog up your thread with more title talk, but you should know that Vermont will let you register a small CC motorcycle yourself without proof of ownership and without actually living in the state. Don't pay someone else to do it for you. Here is a great thread on ADVRider about it (
http://advrider.com/forums/showthread.php?t=655441). Apparently, all you need is a VT DMV form, a Bill of Sale, and possibly a visual VIN inspection done in your home state. Send them off with the requisite fees and, provided the bike doesn't come up as reported stolen, you should get a Vermont "transferable registration" and license plate in the mail in a couple weeks. Then, you can either ride around on Vermont plates or take that registration to your state's DMV and transfer it to get an actual title.
Most states have laws on the books that say they have to accept a title if it was properly issued by another state where the vehicle was titled last. So, NC would likely have to accept a VT registration as proof of ownership if that's what VT gives you. It may seem a little shady but if you think about it titles are just a state form for ensuring that you actually own the vehicle. If no one else claims ownership of the bike (by reporting it stolen) and there is a state that will take your offered proof of ownership (bill of sale, etc.), even if its less proof than another state requires, and will back up your claim that you own it (i.e. allow you to register it), then there really isn't a problem.
What really bugs me are the people who actually have valid titles but are too lazy to find them or get a re-issue, who then sell the bike without a title. It's sad to see so many decent machines turned into parts bikes because of this. Makes me want to buy them all up, title them for a $100 each, and sell them back to the public.