chargerfan2... Tough break.
If it's any consolation to ya', I just recently had a plate denied by the NCDMV... "BADAZZSS"
I applied for it online, and it was approved... but about a week later, I got a letter in the mail much like yours saying that it was approved in error & that the plate would be offensive to others.
I thought I had gotten away with getting it, but I guess they actually use human beings to check behind the computers!
