Murphy, whose yearlong tenure as a Fulbright scholar in Beijing just ended, said that numerous times this month her family was visited or interrogated by police, airport security, neighborhood watch groups and housing managers.
"We were laughing that it was like being stalked," she said. "We loved the people and the country, but the government really scared us."
Even sponsors and corporate heavyweights find their blood pressure rising. Paul French, Shanghai-based founder of Access Asia, said the consumer marketing firm canceled a $500,000 party for a major international client after Chinese authorities barred outdoor venues, frustrated top executives seeking visas and made it clear that it would be difficult for athletes to leave the Olympic Village for meet-and-greet events.
"It just became one nightmare after the other," he said. "It's just not worth the hassle."
Many of the rules handed down are vague and only verbally communicated, making it extremely difficult to plan with confidence, said another organizer who declined to be identified for fear of even tougher enforcement.
"You can't see the bruises on my head," he said. "I've been saying a prayer every night."
Police this month issued a detailed list of restrictions on spectators. These include sleeping outdoors, wearing clothing with "identical designs" -- presumably a step that might in the government's eye hint at a cause or political movement -- or unfurling banners, even if they just say "Go USA!" or "Go China!" Violators face 15 days in jail and a $70 fine.
The Culture Ministry has also been busy. A handful of dance clubs and bars have been closed, mostly around Worker's Stadium. Karaoke clubs have been told to add transparent glass to private rooms under a so-called "Sunshine Project." And earlier this month, the ministry announced a ban on all foreign entertainers who have ever "threatened the national sovereignty" of China. The action came after singer Bjork shouted "Tibet! Tibet!" during a concert in March in Shanghai.
China says it's just enforcing its existing standards, including visa restrictions and a 2 a.m. bar closing
"We do want to have a festive atmosphere at venues," insisted Liu Shaowu, security director for the Beijing Olympic Committee. "Most of our measures are in line with past Games practices."
But others disagree.