Stamcon (Steve):
You're right; the black jumper wire between the receptacles is wrapped the wrong way around the screw. That wire was not continuous, but the ground wire was. The neutral was also continuous.
I am unsure of the Rotozip casualty in the box... it is a nail-on, not an old-work box, so you'd think the sheetrocker (or DIY) would've cut the hole out ahead of time???
Finally, you're also correct in your observation that the NM with the loose red wire nut has no sheath inside the box. I pulled everything out the best I could and shined my light where the wires entered the box and could see no evidence of a sheath. Eeeek!
