So in Illinois, in order to get an SBR you have to be a member of a reenactment club OR have your C&R FFL.  The way the law reads makes it sound like there's a 26" minimum OAL requirement for reenactors but not for C&R holders.
A few years ago when I first started looking into getting an SBR in Illinois, I remember reading that the ATF was rejecting applications for SBRs of less than 26" OAL even for C&R holders.  This bums me out because I'd like to put one together that's about 23".  Are there any new developments in this area that anyone knows about?  I know that things can change at the ATF in regards to decisions on these matters.
I did successfully get a stamp for an SBR with a 27" OAL last year but I'd really like to build a short PCC.

From the sound of it, this isn't a ATF decision or anything they could change.  It's an IL state law issue.  The ATF simply makes sure an applied-for item will be legal under the state laws where it is being made or transferred before approving.

What is the IL law that outlines these OAL restrictions?

It doesn't matter if C&R or Re enactor.
IL law requires OAL to be Min 26" with stock fully extended.
PCC shortest barrel would probably be 7.5" depending on stock.
Build a pistol and it won't matter.
I built a QC10 pistol with a Maxim brace, 7.5" barrel with OAL at 21.75".

Thanks for the responses.  I wasn't aware that it was every really clarified whether the 26" minimum applied to every SBR or just those owned by reenactors.  I can't find the actual law language right now but I remember that the wording of it could pretty easily be interpreted as meaning that the 26" minimum only applied to reenactors and not C&R holders.  I also understand that the ATF was originally approving Form 1s for C&R-possessed SBRs with an OAL of less than 26" but then changed their minds and stopped.  I guess it's all in how the law language is interpreted by the ATF or others that have a say in the matter.  
I was just asking in case there had been any changes to this interpretation, either official or perhaps just C&R holders getting approval for shorter OALs.

The reason that I'm asking about all of this is that I'd like to Form 1 my Glock 17 and use it with a CAA Micro Roni carbine chassis.  I know that some consider these to be goofy but I like the idea and I just think they're neat.  Plus, I have an opportunity to pick a used one up for a song.  I know that they offer a pistol version with a brace instead of a stock but there are some other changes to it and it doesn't appeal to me.  Since I already have the Glock and I can get the Roni used for really cheap, I could have a swell little SBR for not much more than the price of a stamp.  Problem is, the Micro Roni has an OAL of   bit less than 23".  I'm considering adding a permanently installed extension to the Roni barrel shroud to bring the OAL up to 26" but I'd really rather not.  Looks like I probably will if I want to get it approved, though.

I think this is the text?

If so, then it reads like what the OP says is correct, the minimum OAL of 26" only applies to the re-enactor.

If that's the case, why not just get a C&R FFL and be good to make your Glock Carbine?

ETA:  I am reading now on some IL forums that ATF won't approve anyone there with an OAL under 26", so who knows.  Sometimes little hangups like this happen when an overworked federal agency is also tasked with knowing and interpreting local and state laws.  I'd wager they just when with a blanket no-go position to err on the safe side and not possibly conflict with IL law.