Not correct. I failed for no cats at Baker's Basin state center when I had pypes catted x pipe. Went to the director, he gave me a phone number to call. I called and sent over a copy of the pypes website on the cats and pictures of the bottom of the car to compare to. He authorized it and I passed through a state center with 2 cats and an x pipe. It was a little hassle, but if I had a copy of the website about the cats I would have passed on the spot.
As far as paint/bodywork being done correctly, my car had surface rust on the rear 1/4's at the bottom, both doors were rotted out, and the paint was shot. With an employee discount, it cost me about $3500 and 8 months to get the body back to a new condition. My first mustang was like the one you are looking at. And it was constant problems.
I passed with that same catted x pipe after showing them a printout of the webpage describing the part and dealing with a few people. They just didn't think the bumps in the pipes were cats. When I proved they were, I went right through. It helps that I also passed emissions.
Did you only read the first sentence?