i got busted peeing behind a bus stop bench in monterrey a few years ago - we were in the shady area of town south of the bus station, where all the strip clubs are. i got searched by two cops w/ assault riffles and they took 200 pesos out of my wallet. your story is why i have never driven in mexico - ive been down there about 10 times and always travel by bus or plane.
Yep, they always carry assault rifles. The mexican police will drive around, 2 in the cab and 1-6 sitting/standing in the bed of a truck (they have big roll cages and centered benches for support). You'll pull up behind one of these trucks at a stoplight and they will have their guns casually laying across their laps or slung over their shoulder pointing directly at you. its very comforting.