I won't be buying it back, and I'll be getting out of MG ownership for a while I think. But I'll leave this blog up in case anyone finds it useful.
I would recommend getting an agreed upon value for your classic car with your insurer - this will reduce uncertainty about the insurance claim. Your best bet is to use Haggerty or some other specialty insurer.
So I'm signing off. Safety Fast and drive carefully!
1/17/2009: As a postscript - I learned today from my friends at MGExp.net that my car was sold at the auction for $2500 to someone in West VA. I hope they enjoy the car.