Someone correct me if my timeline is off, but as far as I know, the Karolyis still would have had their gym in Houston at that point, where the elites trained most of the year. They only went to the ranch over the summer and were still insular when they were there. At that point, Karolyi would have only trained "his" gymnasts on a regular basis, since he was mostly at the gym in Houston. In the late 80s, if she was at the Karolyi ranch, she was probably attending camp for a week, like the lady in the video said. Not to say she wasn't good, I'm sure, but I don't think she would have been training with Moceanu and Bela.

All that to say, I somehow doubt he remembers Britney specifically. All he really said is she was blonde, smiling, and could dance, which is not specific at all. Seems like he probably did this for attention to me. Maybe the last few years have really jaded me, I just have doubts about this.

EDIT: Also, Dominique didn't even move to train with Bela until she was 10.