The problem with magnetic stickers is... Corvettes have fiberglass body panels. :-)
I once ran timing, here are my thoughts:
Personally, I don't think that transponders are expensive, and I think they'd be a great solution which would absolutely fail because of politics. "You mean I have to buy a $100 device (or rent for $5/event) to mount to my $40,000 car that has $2,000 rims and $1,400 tires?!? What do you think I am, made of money?!?"
I suspect you won't be able to do good detection except if the cars stop at the end. That's something you'll have to play with though, maybe you can set up a zone past the end where they have to stop to get recognized, or *MAYBE* the camera can deal with them if they stick to the recommended speed off the track. Cameras are very bad at getting sharp shots of sideways motion though. It'll also depend on the conditions out.
I imagine you will need to use a hardware timing device that runs in real-time and then you can pull the time off in the non-realtime OS. That or you'll need to run real-time OS extensions. Maybe you can get something reasonable out of a hardware interrupt like a serial/parallel port line change. The normal x86 Linux clock is 1ms resolution, and plenty of jitter, so just expecting to use the clock under Linux is probably unrealistic.
These people are as serious as a heart attack about this hobby. Saying "Accurate to within a few thou is probably good enough" is a good way to see exactly how good your insurance plan is. :-)
You're going to have to deal with things like a car leaving the starting line with "185" on it's side and crossing the finish with "85", "18", or even "1 5" on it. :-)
The "Predator" OpenCV system sounds like it would be awesome to try in this situation.
Consider setting up a place where the cars can go to get recognized and their number entered, maybe at the starting line, but maybe a dedicated area. Predator/OpenCV may be able to detect things like the letter that fell off during the run, but it may also mis-detect in some cases. You'll probably need someone eye-balling the start and finish anyway.
Good luck with that. I tried writing up some documentation for how to run the system I at our Autocross after they trained me on it, and I had my ass handed to me...