More research Done :
After doing alot more research into this issue ( See the original post ) Its not as simple as it looks -- BUT it does explain alot.
The Section 4 quote refers to Americans born outside of American soil, territorries, or military bases/locations , and it applied until 1986 when most age provisions were lifted. What I dont yet know is if the change in provisions were retroactive and ended up making Natural Born Citizens out of former Naturalized Citizens.
Upon Statehood, Hawaii gave Natural born status to all those born in Hawaii as far back as 1900.
So now, we are back to WHY Obama wont release his birth record.. All sensitive data could be Redacted (SSN, Home address etc.) and all the people would need to know is Name, Birthdate, and birth location (meaning state). If it turns out , for example, he was born on a cruise ship chartered from Hawaii outside of territorial waters, Section 4 applies.
Now for some Tinfoil conspiracy..
Is this what 'Passportgate' was really all about ? To get this dirt on Obama ? Or maybe Passportgate was a failed attempt to scrub/alter data ?
The truth is, we will never know.