At least here in the People's Republic, how a VIN number is verified at title transfer seems to vary between offices of the DMV. If you are transferring a car from a CA owner to another CA owner, it can generally be done without physical verification at all. Verifying for registration for a vanity or Year of Manufacture plate can be more problemmatic. I haven't tried to do it yet, but I hear that "good" DMVs will go by engine number, while others require you to go to the Highway Patrol to have them do a more involved inspection. Henry's admonition that the engine number is the car's serial number does not seem to hold any weight at all with anyone. Having said that, I have not heard of anyone having to lift a body off the frame to have the number verified. (Some folks in CA that I know of do a surreptitious additional stamp of the number on a portion of the frame or crossmember so it's visible when assembled...)
As far as transfer of an out-of-state title to California, the CA DMV website says that VIN verification is required, and it can be done at a DMV office or by a licensed VIN Verifier. However, club members just got a new (to them) 1931 Town Sedan from Illinois and DMV apparently refused to verify, stating that a new law required that California Highway Patrol do the VIN verification. A second club member, who is a licensed VIN verifier, confirmed this change. No problems (other than time and hassle), they got it done by CHP and it was titled under the "A" number, not a new 14-digit VIN. I don't know how that would work if it came from another state that didn't title older cars.