A very good point, Ironhead. Our CAA here don't allow it either. If the aircraft guys don't allow machining welds, then we should think at least thrice about doing it on a vehicle as well.
I strongly suspect the reasons the FAA doesn't allow grinding of welds is for ease of inspections, which many of us know the FAA is very good at. as someone here said earlier, a pretty weld is a strong weld. wile that may or may not always be true, an ugly weld IS always a weak weld. by remaining it it's "natural" state, an unground weld is less subject to suspicion in the FAAs eye.
.02
Russ