Residency is impossible to get at IU. You have to basically move to Indiana and live there a year before applying, i.e. show that you moved to the state for reasons other that obtaining residency to go to IU. Once you're classified out of state, there's really no changing it.
IU does not have sections, in that you don't take all your classes with the same group of people, outside of a small peer group (6-8 people). And the Recorder's office does a pretty good job of making sure that the grade distributions balance out in the 1L schedule. So if you have the hard Torts class, you'll have the easy Contracts class, etc.