Twoblink,
Both the Colt and Atchisson (Ciener) conversions work well - I have both and have no problems in either Colt or Bushmaster rifles.
However, your issue is really an interpretation of the state law. Therefore, I'm moving this thread to the Legal & Political Forum so you can get that perspective as well. It may be that the rifle has to be manufactured as a .22lr, or that you may be the first test case of a poorly written law.