Well basicly my county has not yet adopted the 2005 NEC, and they will not do so until mid 2006 or 2007 (I don't know, don't ask me, thats what the chief electrical inspector has told me).

Well now this inspector is going to fail every house that is currently wired in accordance with 2005 because it hasn't taken effect yet.
Only change we have adopted is that we have all 15amp circuits except for the outside circuit AFCI protected.

This can't be right cause 2005 is just stricter then 2002 code so how can he possibly failing us for overprotecting?