The oral and flight portions were both very straightforward. I passed with no problems. The maintenance inspector at the DAL FSDO basically took a look at the airplane on the ramp then walked away (although they may have looked at it more critically when I was doing the oral, I don't know). I made sure the airplane was in spotless shape when I took it the 2nd time, and the FSDO inspector even commented, "looks like you keep this plane hangared". I just kind of nodded and said "yeah, looks like it" (airplane hasn't seen a hangar in years, except for mx).
2 weeks later another CFI applicant from my flight school took the airplane back the SAT FSDO, where I had my original problems. The same MX inspector who had grounded the plane weeks earlier this time approved it for the test. The applicant wasn't assigned the same inspector that I was, but he passed . . . . All in all, I came away from this whole thing with a bit more cynical view of the FAA and aviation in general. I look at everything I do now in aviation with a bit of paranoia.