When was the car last titled?? I'm trying to figure out how it doesn't show the lien. If a Lien is put on property, the Title has to reflect it. Did the P.O. somehow have a 2nd title to give up to the Lien holder. Something just doesn't add up here!! You have a clear title to the Car, You have the car You should be able to register it and retitle it etc...
I wish I was a Lawyer, I would come fight everyone about this for free.