Similiar incident happened several years back (in the 80s if I remember right) in Vegas, but with an assault team of bounty hunters, not cops. Kicked in a door in the middle of the night, came in with weapons drawn. The homeowner responded with a full magazine before being gunned down, his girlfriend too. At that point, the bounty hunters realized they had the wrong address, and the two dead people on the floor were not the suspects they were seeking.
Some of the bounty hunters were dead or wounded and got left behind as the rest all ran to their vehicles and fled the scene.
Along the same lines, I was trying to track down links to a story a few years back, in Maryland I think (but not absoutely sure), in which a resident of a home which had been erroneously no-knock entered, fired on the invading officers, wounding or perhaps even killing at least one of them, and was subsequently cleared of any wrongdoing. As I recall, the court found that the officers had failed to follow department procedures that would have alerted a reasonable person to the fact that they were law enforcement officers, and that the resident had no reason to think they were anything other than criminal home-invaders, and was thus perfectly justified in shooting them.
This was a great story, and I can't figure out why I can't find it. It certainly ought to be required reading for any law enforcement officers being trained to engage in this type of operation. Do you recall this, and do you have any more recollection of details that might help me track it down?