Re: UPDATE:shoot me and put me out of my misery
Not sure if this will apply or help, but I went through something sort-of similar in NY State. I bought a boat with a non-transferable registration, and was told by the seller that there was no title for the boat, and it didn't need a title. When I went to register the boat at the DMV, the lady told me that there was indeed a title, and I had to go back to the previous owner, and either get it from him, or have him fill out the title paperwork so he could get the title, and then sign it over to me.
In my case, we found out that it was an honest mistake - the previous owner hadn't owned the boat for that long. His title request was automatically filled out when he registered the boat a few months earlier, but it hadn't arrived at his house yet. He received and signed over the title to me a few weeks later. I was not able to register the boat until I had the title, but used it anyway in those few weeks (I was able to register the trailer, and the boat had a valid registration sticker from the previous owner).
Anyway, in this whole process, I found out that if you legitimately have posession of a boat in NY, you can always get the title. If you can't contact the boat's title owner, you have to fill out some police paperwork, stating that you attempted to contact the boat's title holder, but weren't able to, or that you contacted the boat's title holder, but he did not get the title to you in some reasonable amount of time. Than you take that form to the DMV, and you can register it. In my case, I did not have to test any of this out, but thought I would pass it along..