BTW I never mentioned the dryer because I assumed it had been that way all along, but I could be wrong, I'm not sure, I know for a while it worked, and I know it was sometime around the time the electrical problems hapenned, but since we never use it, I can't be 100% sure of the time. It very well could be the same time though.

From what I understand you are basically saying that one of my breakers is bad, or the wire was damaged? From only one leg of a breaker? In otherwords on one breaker with the two handles connected together one is working and one isn't?

The thing that I don't understand is back feeding.

I assume that means the electricity is somehow tied into the electricity in the laundry room, though I don't understand how.
(At least connections wise)

Man a diagram would be great now ;-)

I'm no genious, but I do have common sense.