406.3 (D) (3) refers to type specifically isolated ground receptacles with the orange triangle on them.
But reading farther to 406.4 (D) (2) (b) Per 2011 NEC.
But this is kind of Greek to me as in the terminology....
A non-grounding-type receptacle(s) shall be permitted to be replaced with a ground-fault circuit interupter-type of receptacle(s). These receptacles shall be marked "No Equipment Ground". An equipment grounding conductor shall not be connected from the ground-fault circuit-interupter-type receptacle to any outlet supplied from the ground-fault circuit-interupter receptacle.

then (c) goes on to say:
A non-grounding-type receptacle(s) shall be permitted to be replaced with a grounding-type receptacle(s) where supplied through a ground-fault circuit-interupter. Grounding-type receptacles supplied through the ground-fault circuit-interupter shall be marked "GFCI Protected" ans "No Equipment Ground". An equipment grounding conductor shall not be connected between the grounding-type receptacles.

Please correct me if I am wrong here, but what I get from this is that (b) is saying that I can put a GFCI where there is no ground, but it must be marked "No Equipment Ground"? And Equipment Ground refers to the ground conductor that goes back to the panel. If that conductor is broken between the GFCI and the panel (no ground) it is called NO EQUIPMENT GROUND?
Now (c) goes on to say I cannot connect the ground conductor between normal outlets that go back to an ungrounded GFCI?
I just want to make sure I am doing this right. The guy I am working for is not going to get an electrician in there to do this work, and if I refuse to do it, I am out of a job and he will get someone else who doesnt care about doing it right in there to do it.
So my idea of a GFI needing a ground to work is off base...
HotLine, I thank you very much for your help and pointing me to where I needed to look.