Update:
I found a local place that was fairly easy going and got it passed. The thing to do when looking for a place is to go in and ask what they look for. It doesn't take long to determine if they are going to be anal. I've mentioned the Cdn Tire on Kingsway about the headliner thing. Another place near me saw my car from across the street and immediately said there would be problems with the lowered front. I suspected he might be able to detect narrowed suspension, and other major susp mods so I didn't go with him.
The guy I went with didn't notice the lowering or narrowing. I don't think he even knew Beetles didn't come with 4 wheel discs. The only thing he didn't like was tires that were close to the indicators. The spec is min 2/32\" (which is where the indicators are) He wanted more. I threw on some wheels and tires that had lots of tread and went in. All he was concerned with was tight suspension, and no rust. He only removed 2 wheels, and didn't measure any rotors or pads. He just eyeballed them. Then the basics, lights, horn. Strangely he checked for play in the door hinges, and yanked on the bumpers. He said rust was a big deal.
If anyone needs to get an inspection and wants to know who it is, PM me.