new member from the great white north

[MacataQ]

hi all
as the title suggests, i am a new member from the Niagara Falls area, not really that close to the Falls, but my town you would never have heard of. i have been on the site for a year or so but never registered since i didn't actually OWN a 67-72 Chevy. that changed last week when i finally found a truck that i could hopefully bring back to its former glory. i negotiated what i believe was a good and fair price and was excited to start on my journey, unfortunately i have run into some VIN/Ownership troubles i am hoping i get get sorted out. the truck is from the US and the fellow that bought it brought it over the border, paying all the required taxes but never registered it in Ontario. he had the original signed ownership from the owner. but it seems that the previous owner, an elderly gentleman, signed in red ink!! the people at the MTO( (your DMV) said there was no way they could even touch a document like that. wondering if any one here has had any similar experiences and could offer any advice on how to solve this problem. the guy i purchased the truck from is as frustrated as i am and has offered to give me a full refund, he is not trying to pull a fast one or anything. this can be a great truck, and i have been waiting for the right one for a long time.
appreciate any help you could offer.thanx
mac