Well i got a call back from someone I know that works at a top 10 firm, and they called their head of Recruiting/HR department who affirmativley said that on THEIR own application, to put NO because it has been expunged, and that they have run into many situations like this before.
So theres the answer on the firm side i guess... still going to call the CRD today, i'll let you know what they say.