[Aragorn]

What would I do about this guy? Nothing until he tried to do something that affected me. Then I would respond in kind.

He sounds like a nut job ready to go off. You know he is armed and from your post he seems dangerous. I would just document all his tantrums and notify the proper authorities when they are egregious enough to warrant it. Stepping in to it now could just set him off.

As to the C&R first talk to an attorney who does planned communities and HOA's to see if there is a way to amend or set up an agreement. Even if the original Covenants and Restrictions were improperly recorded in the 80's there has got to be a way to fix it now. Never hurts to talk to an attorney to get his view on the matter first. Then have a community meeting to discuss setting up new standards. Only then can you see about getting the community back to normal and this problem settled.