You might pass smog... it's the OEM  fuel injection system from a car that was sold in cali, sooo...  Not really sure how the law works, though because Cali's gay like that.  Anyway...  It's basically the mechanical fuel injection system from an early '80's VW, and it replaces your carb.  Google or Wiki K-Jetronic or Bosch CIS for more info.  You put a plate between the head and carb manifold for the fuel injectors, the VW throttle body bolts to ram tubes that bolt to where your carb used to be, and run some fuel lines, an external fuel pump and wire a solenoid or two. 

Mechanical injection works a lot like the EFI Toyota used in the '80's in the respect that the air being drawn into the engine passes by a vane, or door if you will, and the amount the door is opened determines how much fuel is fed to the engine.  The VW system is much more simple than EFI, sort of a cross between a carburetor and EFI, but won't stumble, load up, run like crap on an incline or in inclimate weather like a carb will, and according to Myron (whom I've talked on the phone with and seems like a straight guy), it will improve power and mileage.