Mr_Electrician:
The reason I was given is " Someone may mistake it for a 120V circuit and tap into it".. A bit far fetched if you ask me, and I have seen tons of 240V installs that have been done with regular 2 conductor ( black and white ) romex with no problems... I wonder what would have been said if I happened to have used AC-90, how that would have played out.

Speaking of AC-90, I have worked with the "iso ground" AC-90 before. I was told it was because of too many people connecting the red to a breaker and not to ground, making for a dangerous situation..
I am not sure and I will check, but I *think* that regular 3-conductor AC-90 may be used as long as the red conductor is sleeved with green heat-shrink tubing and NOT taped, and done in every box the cable is spliced or terminated at..

A.D