A couple of months ago, I transfered my WVa driver license to a NY
driver license.  My WVa driver license was surrended at DMV NY.  A
couple of nights ago, I was pulled over by a WVa police officer for
driving below the speed limit (he claimed I was doing 28 on a 45 mph
zone).  Ten minutes into this routine stop, I was in handcuffs.  The
officer stated that I was driving with a suspended license, supposedly
my previous license (the WVa) was on suspension, not the NY license. 
I was made to pay a fine and my car impounded.  The ticket was written
against the WVa license that I do not possess anymore. My snafu with
this whole scenario is; after surrending my WVa drivers license at NY
(the NY license was issued before the said suspension on the WVa
became active), I will presume legally that the WVa license is null
and void? correct? if that is the case, was I a victim of wrongful
arrest? Can I sue the officer/department?

Where do you live?  Are you really a resident of NY or are you living
in WV?  You mention you transferred the license, but said nothing
about moving.  I'm a skeptic and suspicious in general.

What you are experiencing is called a reciprocal drivers license
agreement.  Many states share their driver record data electronically
through the National Law Enforcement Telecommunications System (NLETS)
located in Arizona.

When a NY Law Enforcement Officer makes a query as to your drivers
status, the computer system automatically will make several queries
using NLETS.  It will check the NY state DMV system, the NCIC system
to see if you have any warrant or if you are wanted for something
'bad', and finally it will make queries to those states with which NY
has a reciprocal drivers license agreement.

The DLA is a voluntary, reciprocal agreement among member
jurisdictions to promote the ?one license-one driver control record?
concept and to provide for the fair and impartial treatment of all
drivers operating within their respective borders. The DLA deals
specifically with the issuance and retention of driver?s licenses, the
update and maintenance of driver records, compliance with the laws and
regulations relating to highway safety and federal mandates, as well
as the exchange of information between member jurisdictions. (
http://www.house.gov/transportation/highway/09-05-02/cross.html )

If your license is shown as currently suspended in W VA, even though
you surrendered it, you still need to take care of the fines and costs
associated with the W VA issue to make your NY license valid.

The interesting part is that when you obtained you license in NY, the
DMV folks did not let you know at the counter that you were
suspended... unless the suspenstion showed up after they issued you a
NY drivers license.

How interesting, never heard of anybody being arrested for driving
below the speed limit. I can see driving at 5 mph on a 45 mph zone but
at 28mph?  I've done that countless times. What is the
expected/accepted speed range for speed limit zones? is it ten percent
below the speed limit? is there a range or do they play it by ear?

I live in Troy NY, my wife and son lives in WV.  

Per your comments trongrr-ga, in brevity, my NY license is not valid?
or is in suspension mode too? till the suspension runs out in W Va.

elids-ga - The arresting officer said he pulled me over because I was
doing 28 on a 45 mph, which insinuates DUI.  I was not asked to walk
the line, follow the pen or even take a breath whatever.  He took my
license and registration and came back and said, please step out of
the vehicle.  Had me place my hand on my hood, searched me for drugs
and/or weapons and then told me to  turn around and then handcuffed
me.  He placed me in his cruiser and proceeded to search my entire
car.  When he was done, he called a towing service that towed my car
away, I was taken to a judge, who read me my rights and proceeded to
escort me to an ATM to procure funds for my fines.  After paying the
fines, they told me have a nice morning.  If I did not have the funds,
I would have spent the night in jail until through whatever means such
funds would have been made available.

The confusing part of this scenario is that the driving with a
suspended license ticket was issued against the WVa license that I do
not have anymore.