I took a quick look at the SMG site -
Type 2
http://smgguns.com/?page_id=99
Type 1
http://smgguns.com/?page_id=1153
Fascinating project(s). The Type 1 would interest me, but at ~$5,000+ I don't think I can swing it.

If I were still working and had the disposable income I had then, a Type 1 would be a possibility.
I saw an original Type 1 at a Rochester NY gun show sometime in the '80's, IIRC. Show display only, no bids accepted, and guarded. I did ask the owner about it (our table had my MG-34 w/dummy receiver on it) and I think he told me he bought it for $5,000 back then...
Sometime after, the show organizers banned 'DeWats' and 'parts kits' assembled into displays. No reason was given. I didn't get the members name; no idea what he did with it.
I don't get to Knob Creek for the MG shoots; has anyone ever heard an FG-42 fire full auto??? My only impression of the rate of fire is from several PC games; if they are accurate, the rate of fire is
much lower than most select-fire rifles...