that is a pretty interesting interview, thank you.
I read about the whole "seeing the paths of bullets" thing in (I believe) the foreword to "Budo." Wherever I read it, it was definitely in a short piece by Kissomharu on the founders life. The mention I saw jars slightly with what Stan Pranin said on the matter, although what he says sounds about right to me.
Anyhow, that's my ha'pennys worth.
(Do read the article by Tiki, especially if you're not familiar with the origins of the grading system.)