Well, what was the title of the person over the team you were applying to? Higher than Sr.Director of Engineering?
If you are being poached off by the Sr. Director for assignment to his team it might be advancement before you have even been hired. A Small team means you might get to write your ticket within the constraints of his project. (You would also be more responsible for the success or failure.)
I would explore it and take it as a positive as long as they are not asking you to do something outside your expertise, or something that you cannot learn within the position.
Good luck and go for it!
Okay, that makes me feel better, thank you and everyone else!
-SB