Refresh my memory.Is it still legal to replace grounding type receptacles with
ones that have no provision for ground?
Looked at job today where city inspector
flagged them for lack of equip. grounding
wire.

Replace the recpt that has no ground connected to the third prong, with a recept listed for replacement only, and on a system that doesn't have a ground available? Same as what was there in the old days, when it was installed?

Sure it is! It's not as if you have some phoney ground. You could put a GFI in too, marked "No equipment ground". See 406.3(d)3