Since I usually cache alone, this story scares me. I would be absolutely devastated if approached and/or challenged by law enforcement officers, much less if I were handcuffed and hauled away. That said, I've always known it was a possibility -- not to be arrested, but to be questioned. I have seen a thread on the groundspeak forums that deals with cachers' experiences with law enforcement so it's certainly not uncommon.
As stated by others, this unfortunate event should serve to make us all more aware of our responsibilities in hiding caches and our approach to finding them. I'm with backpacknjack -- I won't search for one if I am at all uncomfortable with the surroundings. In fact, I stopped to look for this one on Thursday (1/26) afternoon before learning of this story. I felt a little strange, being in the wide open in such a public place, and when the cache didn't immediately reveal itself in the obvious hiding spot (already archived, but I didn't know) I returned to my car and left. I wasn't there over 2 minutes. Now I wonder if the Exxon station owner was watching me and if the police were on their way after me!!
I think some of the suggestions that have been made in this forum are excellent. Education about geocaching on a broad scale, and individual cacher's preparation for the inevitable times when you have to educate in the field, would go a long way toward gaining greater acceptance for our activities.
With regard to stories in the newspaper, there have been at least two in the Dem-Gaz, because that's where I first heard about geocaching. Maybe we could get our hands on reprints of those articles, or others from other newspapers and magazines, to carry along with us on our ventures. I keep a 3-ring binder in my backpack with printouts of cache listings on my to-do list, and as soon as I finish this post, I'm going to go add a section on what it is so I'll be prepared if I ever find myself having to explain it!
NatureFish, thanks for being a voice of reason.
Gener_Lee, sorry for your misfortune, and I hope it all turns out well for you.
TopKitty98, although we've never met, I feel like I've come to know you somewhat through your logs, and you seem like a great person. I hope this doesn't leave a bad taste in your mouth.
LadyRedbug