I remember dealing with a similar problem back in the '90's, when I lived in Minneapolis as well...
The seller had written the name of a person (and the bank they worked at) on the title, but never actually had a lien against it with that bank (or any other bank). "Too bad", they said at the DMV..."You need to get a letter from that party that disclaims interest in the vehicle."
Well, I got lucky, in that the guy still was alive and working at the bank that was still in business in a small town, far away from Minneapolis. Eventually, he wrote me a letter that worked to solve my problem.
Not sure how much trouble it's going to be for you, but in Minnesota, writing anything on a title that absolutely doesn't have to be there is a potential problem, IME.
I would start by finding out if you can find the person who last titled the bike, and see if there's a reason she signed it in the wrong place. Hopefully, the DMV will see her error in signature location and just move it along...if her name in the wrong place is the only random information on the otherwise-good title, you may be in luck.
As to the plate being wrong...I would just ask at the DMV for a new plate, saying that the original plate is lost.
In reality, a frank conversation with the DMV people has always been the answer for me, even though it may be asking for some new hassles.
The Vermont thing above looks interesting...
Good luck,
Shane