Wicket,
It sounds like you already know what to do. Unfortunately the level of b.s. varies from company to company. Sad truth is some people are so scared to lose a job or find another one when they have alot at stake (wife, kids, student loans, marginal experience, etc.), they continue to accept unacceptable business practices to the point where it becomes normal. Hopefully you can land in another role which alleviates much of your current stress. Good luck.