Chris, thanks for explaining the dificulties that we run into with rules.
Up until 2007 we only had one class that allowed swaps/hybrids. For 2007 we now allow "Limited Prep" swaps in H2. This is because swaps like the B16 and GSR are not competitive with the K series engines. It also allows driver who want to run a swap to run at a lower overhead.
The video from the H1 hatch was from a NASA NE weekend. Since NASA NE is still in the early phase of it's wheel to wheel race program we only have one race group that all classes are thrown into. So far it has worked out quite well but I'm sure once classes start becoming far more populated things will have to change.
The STi that blew T1 is from XXTuning. The car is dumb fast and started that race on pole.