It's funny, I was just on that website and was wondering about that sign myself.

If what the responses here say are true (that the two-hour limit addressed in the middle portion only refers to non-permit holders), then those signs horribly worded. The way its currently written suggests that on a typical Monday...

8-10am, NOBODY can park at all
10am-5pm, NOBODY can park for longer than two hours
5pm to 8am, ONLY ZONE 1 PERMIT HOLDERS can park for longer than two hours.

I know that its generally accepted that permit holders can really park longer than two hours all day (apart from sweeping time), but is this actually explained somewhere on a Parking Authority or some other official website?

I lived in JC for 5 years or so and never questioned it, but after moving to NYC and dealing with the intense on-street parking rules, I have to say the JC signs are actually MORE confusing. I mean, what is supposed to indicate that the second part of the sign only applies to non-permit holders? The green color?

Just make sure you aren't on the side for street cleaning, because I've gotten plenty of tickets that way because, well, I'm a dunce. Don't be me!

If your permit is for the zone you are parking in then you can stay beyond the 2 hours. The 2 hours notice is for people without a permit.

If I have a permit and an I park somewhere and it says "2 hr parking Mon-Fri" but I am able to park there because I have a permit, can I stay there beyond two hours?

Here is the sign I am talking about;

Parking Sign