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I would guess that he made/modified the sear at home. From what I recall, the sear is really the only part of a "machine gun" that ATF cares about (and any sort of multi-round burst mechanisms if the weapon has such equipment). If the sear did not cross state lines, everything else may very well have been legally transported.
I am thinking that this is not the sweeping reform gun rights folks might be thinking. I'm wondering if this individual portion was taken from a larger context for effect. I simply do not see an appeals court overturning the MG Ban, even if some of their language weakens it.
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