Good luck in court. It seems that you have a reasonable argument. Bad signage is a legitimate complaint.
Good luck with the court.
Regarding the insurance side of things, it will suck because you pretty much lose one credit point for six years, so if you don't get the citation thrown out, you're dealing with the problem for six years. Yech!
Here's an additional article that's a little less snide but says the same sorts of things:
http://www.nationalreview.com/adler/adler200412010837.asp
Yeah, you read the URL right.