While you have the voltmeter out, select the resistance function, and measure the resistance across the gound and neutral, and again across the ground and hot side.
Gnd to neutral - you should read the resistance of the ground and neutral wires back to where they tie together at the building load center. (If the outlet is 20 feet from the panel, you will be reading the resistance of 40 feet of wire plus the connection between them) A couple of ohms is what you want to see, maybe 0-5 ohms. Anything much higher than that, and you have bad connection between the neutral and ground somewhere. Most likely, at the panel or the load center if it is in a separate location. The voltage drop across this resistance is what Bren was telling you to measure. In the computer business, we raised a flag after it got higher than 1.5 vac. You would normally expect to see 100-500 millivolts. Seems to me that the 300mV range is about right.
Gnd to hot - You should get a very high, or infinite resistance.
When measuring the voltage, the sum of the 2 volatges that you read between ground and hot, and ground and neutral should add up to exactly what you read between the neutral and hot.
You're power is definately still hosed (technically speaking, of course.)
