By now, the entry has probably dropped off of your credit report. I'm not sure why the account was "re-aged" in 2006, or whether that was permissible, and unfortunately I can't read your credit report from where I'm sitting.
If you think you can prove any of your claims in court, and can articulate a valid basis (e.g., a violation of the FCRA or FDCPA) you are free to try. If you don't want to pay for a lawyer, see if you can find one who will represent you on a contingency basis or in anticipation of an attorney fee award, or sue yourself in small claims court.

