Flagged means you have to go to the ref and the ref will be a dick to you unless you're coming to them on your own free will because any Engine Swapped car in California must visit the Smog Referee to be legally driven.
They're nice to you if you just show up and say "i just did this engine swap and want to make it legal, can you tell me what i need to do?"
You have to become a DelSol basically =) OBD1 P30 ECU (nothing else)
USDM B16 Intake Manifold OR Skunk2 Carb Legal (must get sticker with product)
Everything wired correctly -
http://www.rywire.com
It'll run you around 800$ to go OBD1 correctly, most expensive part is going to be the P30 ECU, people hunt for them for months. Try to find someone you can rent it from just for passing Ref inspection then use a P28 chipped the rest of the year.
checkout norcalcrx.org too, there are several Bar Certified cars on there.
(i only point this other forum out because its california specific, no disrespect to the owners of honda-swap.com <3)