Our letter to DPI can be found here: NC: Open Letter to N.C.'s Department of Public Instruction or http://tcfpbis.blogspot.com/2009/03/nc-open-letter-to-ncs-department-of.html.
The response from DPI is as follows. See if you can make any more sense out of this than we've been able to thus far. We've highlighted some of the more "interesting interpretations" and placed our notes in brackets. We're also working on a response and will let you know if we hear anything more.