dstrong 

Those seem like an odd set of components to warrant failing the inspection. Who was actually doing the inspection? Was it a shop that was just trying to sell parts and services? Do you have an opportunity to take it to a different shop that does inspections to see if they might pass it? If they don't, they will have the parts you need right there and will be able to make the repairs and then give you the sticker.

Oddly enough...I just ordered a new chain and cassette from Nashbar and they'll arrive on Saturday. Both components are just plain old and need replacing. I also just replaced my bar tape a few weeks ago when I re-did some brake/shifter cabling. The total tab for the chain and cassette was $87. My guess is the shop price for a new chain, cassette and bar tape would be about $150 depending on the components.

I took my bike to a shop in Austin 3 weeks ago. I do all my own wrenching plus I do a few weird things with my cable routings, so I was expecting them to hem and haw about that. The mechanic threw it up on the stand, ran it through all the gears, made a small adjustment to the front derailleur and then said "Well...the tires look a little worn and your back wheel could use some truing". Then she took it off the stand and looked at the brakes and discovered that the rear brake cable housing was too short so that when the bars were turned hard light, the rear brakes engaged. I managed to convince her and her shop manager that I would remedy those things and they just shrugged, said "okay" and stuck a sticker on my stem.

Good luck!