Has anyone answered the question about arrested vs convicted? Let's say you were walking home from the Kwik-E-Mart, munching a burrito, and are arrested at gunpoint because you are 5'2", red hair, and that matches the description of a guy that robbed the bank four blocks away.
You are released 2 hours later when the real bank robber is caught.
What do you say in the interview? Tell them the whole story? Probably good for a sympathetic chuckle.
But it gets worse in the next example. You are accused of tax evasion, and endure a LONG and expensive trial. Ultimately the jury returns NOT GUILTY. This one is not so easy to talk about. Even if you say "Yeah I was arrested but not convicted", the interviewer is probably thinking "Hmm, how'd this guy get off? Loophole? He MAY be guilty."