I just went through a lot to get this information so im posting for future searches. DMV's know nothing.

Secretary of state contact
Allen. He is the man that can answer all questions regarding kit cars, junk titles, converting titles, inspection, packets...everything! A lot of secretary of state agents don't even know this guys exists. Found his number from quality control. 217-558-2406

How to get rid of the donor shell legally before the kit car is finished
Make a copy of your existing vehicle title for safety. Send the original title from the previous owner(with your info as the buyer) to:

Secretary of State
Special Constructed Vehicles
501 S 2nd Street, Room 698
Springfield, IL 62756

(in lower left hand corner of envelope YOU MUST WRITE "TD31" or a random person will open it and do what they think with it. If you write this, only Allen opens up the mail. Again, hes one of the few that has the kit car process down.

attach a note. Include car info, name, address, phone number. Say you are building a kit car and to put my title on file for later title conversion. Tell him you would like to junk out this title so you may legally be able to scrap your body shell at a junk yard before the kit car is completed. Also request a kit car packet to be sent to you. What Alan does behind the scene is starts your file, includes original title, junk title and adds some notes to your project. He will then send you said info packet with forums and your junk title. Possibly in 2 mailings. No taxes are due at this point.

Normal Process of Titling
This part is easier. Request a kit car packet from Allen by calling the above number or Review website. Follow instructions of packet. You should find a tax ST-44 form needed to be filled out umung other forums, also 4 pictures are needed. Some items are different from a Cobra(replica) to a 818(non replica). Send this stuff in with your manufacturer origin from FFR and Allen will convert everything to a new VIN. If you have the car shell, be sure to explain and request he send you a junk title for junking purposes only. Recycle facility take this title! You will have to get the car safety inspected(usually by a car club) after you receive permanent title(not junk title) and VIN
cyberdriveillinois.com/departments/vehicles/title_and_registration/apply_custom_rod.html

Hope this helps some people in the future!