I wish there was more I could do for you Stillwaters.
The only thing I can say is this: I work for lawyers. I write the letters you read on a daily basis. I hear my boss on the phone, yelling to the opposite party, and then hanging up to go laugh it up on the office next door. It's all a game to them and they LOVE it. They enjoy it. I suspect some get off on it. Try to keep this in mind as you read the letters sent your way. It's a common tactic to ask for way more than they think they can get, all the while using the language that makes it all sound so official and reasonable.
As for what your AH is asking for, I don't know how they could get blood from a stone. You're unemployed at the moment? You have no assets? They could very well order you to pay x,y,z, but then, how would they get it from you if you're in another state and unemployed to boot?
I dunno. I'm sorry I'm not being more help here...