A little searching on the Simpson website led me to some anchors that
may satisfy the inspector's requirement for anchor bolts on the new
sill plate.
http://www.strongtie.com/products/connectors/UFP.asp
Simpson's site is full of code references, load test results, and
corrosion data that should satisfy all but the most obtuse inspector.

But I still need an idea or two on how to lift/support a 12' section
of the two story house where the joists run parallel to the sill
plate.
Like in the side of the house in the first picture here
http://www.coolhouseplans.com/floor.html

Not one of you is clever enough to think of a way to do this?