
How do you be completely honest about background issues and still get a job offer but later called back and have the job offer denied.

This is a catch-22 because you want to be up front with regard to your past, but you also don't want to be automatically disqualified from consideration.
There are a few things you can do.
Seek out employers who do not conduct criminal background checks. Smaller/local companies are a little more lax on this as the cost of background checks are something some business owners do not want to be bothered with. You can also check around with friends and family to see if they know of any places hiring where criminal background checks are not provided.
If the application specifically asks if you have a criminal background, don't lie and say no. If you do and they run a check and find out you lied, you will most likely have the offer/job rescinded.
If you land an interview and they ask you about your criminal background, be honest and speak candidly about what happened, don't be coy or laugh it off.
I was a hiring manager for a call center years ago and we were allowed to hire employees with felony backgrounds as long as it wasn't theft or violence. If the applicant was completely honest and genuine, I would give them a shot. If I felt they weren't being forthright, then I had trust issues with them and wrote them off then and there.
Ultimately, you have to find the balancing act that works for your situation, but I would definitely start by seeking employment where the employer does not run a criminal background check.
To be honest, I am not sure how common the practice is now. The last three companies I have worked for have not run a drug screening or background check, so maybe it is just a practice that is slowly falling out of favor.
Good luck LaTanga!

If you have something in your background that is damaging to your carachter Just smothe it over by saying you had a very unfair unsettling experience.

Maybe there was someone within the company that wasn't ok with it.
If you find out please let me know. I’ve been turned down for decent paying jobs 11 to be exact in the past year. I’ve been totally honest and I haven’t said anything other than writing it on the initial application. Those two ways didn’t work for me.