International Title Service based out of Nevada. www.its-titles.com
The way it works is, you sell the vehicle to them on paper, they register it in a state that doesn't issue titles for older vehicles, than sell it back to you on paper, and include the registration from the other state. The DMV has to accept these, because if you were to move from such a state, you wouldnt have a title. I guess if you had a friend in a state like this, you could accomplish the same thing. It cost $125 I think, but I just went to the site and it says to call for a quote.
edit: looks like its $275 now. But when I bonded through the state, I had to buy a surety bond - $150 then had to pay all the state fees, then had to wait 5 months. They rejected it once because they weren't clear on the background story of where I got the truck from, and I had to send a certified letter to the last known owner, and wait for that to be returned. If the person you bought it from actually titled it in their name ever, like nuclearlemon said that would be the easiest way out. But if not, title service is the way to go.