Yup, I'm "pre-approved". As for inspections, I've read about them on other forums; my understanding is that a BATFE agent requests an inspection, and when they come out they examine your records (I'm required to keep a bound book listing my C&R purchases and disposals). I haven't read of any "nightmare" scenarios...in every instance the agent was polite and businesslike.
My Gun dealer is a Kitchen Table dealer. He operates out of his basement.
I asked him about dealing with the BATFE and he told me as long as you have good records and act decently, they are cool.
Then there was a Gun dealer that kept his records in a waste can and when the agents came by to inspect them, he would pick up and can and hand it to them. He got inspected a lot.