(Hint: "Purely Functional Datastructures" solves this problem for graphs shaped like a sigle ring. Perhaps this solution can be generalized?)
I can also give more details about rules and conditions, if needed.
P.S. Might as well make it 100 GBP for the first challenge. I am really interested to see whether there's a solution that does it in O(1), like zippers do. (Or alternatively a proof that O(1) to move from node to node is not possible.)
It's cited as "Conor's paper" in your article. But the link there doesn't work.
http://hackage.haskell.org/packages/archive/syz/0.2.0.0/doc/...
Its internals are pretty interesting if you've ever thought about implementing a generic zipper structure. For example it uses Typeable to reify the focus type.
I'm finishing up my own generic zipper library which I hope will be simpler and more useful than syz.