I really like the HBO series "the Wire" about the Baltimore police force and the pursuit of various drug gangs, which I have been catching up on via DVD. While season 2 and 3 were not quite as good as 1, they still are quite good.
In many respects, this is a very libertarian series in outlook. A central part of the show is that government officials nearly universally do wrong and wasteful things. However, only a few of them are overtly corrupt. The vast majority are regular folks responding rationally to the types of incentives government employees are given and which result in really bad outcomes.
In fact, I may just be screwed up from too many years in a past life working on corporate performance metrics, but at some level the show is all about incentives. Even within the drug gangs, there is an interesting interplay between Avon and Stringer due mainly to the fact that though they face roughly the same circumstances and inputs, one has a goal of making money while the other has a goal of reputation and street cred. I can see now why the Freakonomics blog discusses the show so often.
Oh, and the season 3 experiment with effective drug legalization is also interesting.