Thanks for all the great advice and encouragement. I still can't seem to forget all the yahoos who acted like they were innocently doing their jobs (township manager, solicitor, judge, realtors) each one insisting that the "letter of the code" was being followed, but this is a very small matter in the large scheme of things. U&O means "Use and Occupancy". The township has an ordinance that requires an inspection by them when a property is sold. Its an effective way of swindling money from people. There's more to this story, but suffice it to say I can just let it go, and that's what I should do.
If I went through it all over again, I would park myself in the township manager's office, insist on a meeting with the inspector, and rub their noses in the building code. Their "appeal procedure" was designed to limit my voice and speed me along to property settlement while having to complete a long list of "repairs".
Thanks again... great message board! The guys who post frequent answers are extremely helpful!!