I'm not sure if I should jump in here but it's time to clarify what I believe Jeff is talking about in regards to the #3 Pace Car.
The 4K car that is in question, I believe, was one of the Display cars that could have been found at the Indy Museum or at the Murat Temple.
I have verified that at least two display cars were delivered to Indy. Just as today, the Museum always displays a mocked up Pace Car. In 1967, the original plan was to deliver 3 L78's. One for the Pace Car duties, one as a "back up" and one to be given to the winner of the race.
1967 was a year of many firsts, when it comes to the Pace Cars that were selected to pull the duties at Indy, this statement couldn't be truer. It is the first time in Indy history that the Pace Cars were considered modified. Although, not much by today's standards,but nevertheless modified for the day.
Do to Speedway rules for Pace Car qualification and Chevrolet's hasty effort to debut to "the Industry" the NEW L78 motors in the Pace Car, these cars had to be changed into the hybrid animals that Charley and the Clarey's have today..or more like what just Charley has today.
The original third car was made into a test mule as stated by Phil. The fact that an L78 could not of had a automatic in 1967 is only true for public sales. The Chevrolet Proving ground Mechanics had the inherent problems that existed when mating a L78 up with a Turbo 400 worked out before the end of the first day of Pace Car trials.
The only stated reason for the L78's being pulled is because they made a "Terrible racket" as described by one of the Indy Zone managers that I interviewed. And Chevrolet didn't want to chance anyone in the crowd or, god forbid, anyone watching at home to ask themselves..WHAT IS WRONG WITH THE CAMARO PACE CAR SOUND!!!!!!!
So when it comes to the car that Jeff is talking about, which I believe to be this car (or one just like it). The "System" had already had it scheduled to be a L78, not for Pace Car duties, but to show it off to the ever pressing crowds that visit the Indy Museum and the Murat Temple at this time of year, the NEW L78 motor available to the Camaro.
Note about the car pictured.
The Pace Cars and Pace Car replicas were numbered based on there delivery date. This car is #124 which is perfect for an 04D build car. We already have an 04C car which is # 117.
There are no other vintage pictures to date showing other replicas with Flags. Just the true Pace cars which all had white rears!