Doing more research is a good thing, from what I can gather from reading the full USC section 925 this will not apply to curio and relic firearms meaning mausers, sks, anything of that vintage. I will call a guy at ATF tomorrow.
Official word from ATF, all C&R milsups are OK, they are gearing this more towards the evil terrible assault weapons and machineguns. So anything that is classified as C&R is OK and that does include the SKS model 5966. Also on a happier note, another open letter, from ATF states that the State Dept has now decided that the reimporting US Military weapons that were sold to or given to Foreign governments is now OK. This is great news, as there are several hundred thousand M1s and M1 Carbines out there that the CMP wants, but has been unable to get due the prohibition by the State Dept. Also this has opened up the way for private companies to get these guns back into the US in operating condition rather than as parts kits.