As usual, Wayne had some good ideas.

Have you tried calling a couple of collision repair places to see if they have any good ideas? Surely they have fixed up some client cars that were totaled by an insurance company and should know what if any corners can be cut.

Found this quote on the web about MA salvage title inspections - "However this inspection is only to ensure that no stolen parts were used in the reconstruction". Your experience is clearly at odds with that. While quotes are free on the web this one is from a consumer help group who might be willing to fight for you or at least point you in another direction - http://www.massconsumers.org/carsmart/004.html

Maybe a local tv station with a consumer help line might give you some aid. I mean with those before pictures and your tales of overzealous inspectors that would make a good little guy vs. the big nasty government story.

I do wish you good luck. However I must note that butting heads with the government can be much more trouble than it is worth. Point being if this continues to be an expensive exercise in futility, throwing in the towel may truly be the best option.