There never seems to be a shortage of would-be "Barney Fifes" and they all seem to work in post offices, town halls, courthouses and, as you've experienced, DMV offices. I agree that you're being handed a crock. Unfortunately, being right makes no difference when dealing with officious individuals who know that they can leave you twisting in the breeze with nothing to fear. That's why I use ITS, $75 buys peace of mind. That said, you're either going to have to find another "inspector", if that's a possibility in your locale or replace the VIN tag. Toughest part of repopping a VIN tag is finding a stamping die set of the correct size. The hardware store variety are too large.