I think many respondents are missing the OP's questions.
1) Is the wiring safe?
2) What remedies are available for the poor inspection?

I'd guess #2 depends on the answer to #1. I'd also guess that
the cost of litigating this might exceed the cost of rewiring the house.
Cost = Dollars (presumably recoverable if you win) + headache (which
remains, win or lose).

RayV wrote:
I posted a while back that I might have aluminum wiring in the house I
bought last May.
The original post is here http://tinyurl.com/qvdbb ).

Turns out I do have copper clad aluminum wiring throughout the entire
house. The sheathing is marked "Al Cu/clad" either 10/2 or 12/2
attached to a 20 or 15 amp breaker respectively. Since the house was
built in '75 I specifically asked the inspector to check for aluminum
wiring. He told me the house had none. I know, I should have checked
further before completing the sale.

I'm thinking he should have known for two reasons, the sheathing is
marked Cu/clad throughout the basement (unfinished) and the size of the
wires in the panel are 10 and 12 with mostly 15 amp breakers.

So the attorney says I would most likely need two things to seek
damages from the inspector:
1. An estimate to repair/replace the wiring. Should be fairly easy to
get an estimate.
2. An expert to testify as to the unsafe conditions caused by the
wiring.

Number two is where I'm thinking I will have a problem. Aluminum
wiring *IS* a hazard even if installed properly in 1975 by a licensed
electrician using a proper calibrated torque wrench to tighten all
connections. But the CPSC states in it's bulletin,
www.cpsc.gov/cpscpub/pubs/516.pdf ,
that copper coated aluminum wire is not covered by any of the repair
methods in their bulletin.

So, does anyone know of an 'expert' in NJ that would testify that
Cu/clad aluminum is dangerous or of an attorney in NJ that has
experience in litigating botched home inspections?