Sorry about the pic, I guess it really WAS hard to see. Better luck next time. >You did not mention what type of wiring system. Sorry the pic didn't post. Are there equipment grounding wires present at the circuits and are they run back to an equipment grounding terminal at the panel? Is it hard piped conduit where the conduit serves as the equipment grounding conductor? If they are tied to the neutral bar at the panel the system will appear as grounded which is where I think Mark was going with it. What do you see inside the panel? Does your tester identify bootleg or false grounds (the neutrals and equipment grounding conductors tied together at the outlets?) The Sure Test is the only one I am aware of that will identify this condition. Doug Hanson's book Electrical Inspection of Existing Dwellings is a tremendous resource in understanding the vagaries of what most of us hold to be the most difficult to understand system in the house.< As far as the panel goes, there is 12/2 and 14/2romex with grounds as well as flexible metal conduit, and that silvery sheathed wire going into it. Even two aluminum branch circuits that are corroding at the breaker connection. The neutrals and grounds are tied together at the panel as you mentioned. >What Mark & Crusty said. The grounding of receptacles is achieved by connecting them to the grounded (AKA "White" or "Neutral") service bus. The presence or absence of an earth ground has no effect on them. < Okay, I get it now.[:-bulb] >If you are using a 3 Light Night Light tester then you need to upgrade to a SureTest.< Time to upgrade once again. I will also order the Hansen book pronto, I have seen it mentioned a few times before and now its importance has finally sunk in. It seems that every panel I see has a new mystery and every electrician I speak to has their own way of making sense of it. This forum has the means of distilling it all to what is important for the home inspector. >I want to shorten the time from 10 years to something less.< I'm with you, Kurt. Its great to read what you guys have to say and I feel privaleged to be able to ask questions. This has been a big help in thinking about whats inside the box. thanks