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By your original post, I take it the owner has a valid title, albeit in another state. That's OK. An engine number matching the original VIN is NOT required, probably a large majority of vintage cars out there have the same thing. So, I don't see a problem. Have the owner's wife write you out a bill of sale and give you a death certificate, bring it to the DMV office and have it transferred into your name. It should be simple and straightforward. There is no law that says you can't stamp a VALID VIN on other parts of the car, in fact some theft deterrent practices do just that. Once it was my car, I'd buy a nice professional VIN tag and afix it to the frame somewhere reasonably easy to see, maybe by the starter or ??? If you KNOW the engine number is in fact NOT the correct VIN, you can remove it. Its not necessary, but can make the process less confusing. Re-stamping the engine with the correct, valid VIN is not only acceptable, it should ALWAYS be done when a replacement engine is installed. You cannot legally remove or deface the true VIN, which is located on the frame, under the body. Its a matter of common sense. If it was me, I'd make the sale agreement contingent on the title transfer. A reasonable seller will be OK with that. What you are looking at here, if I'm understanding the situation correctly, is not going to be an issue. Have all the paperwork in order, state the facts clearly to the DMV, and then close your mouth and let them do their job.