1) Is it wired correctly or should the existing ground between the two buildings be connected to the existing grounding bass bar?, and
Since an Equipment Grounding Conductor (EGC) was run with the circuit conductors it should be terminated to the bonded buss bar in each panel. In the service equipment at the supply end that buss bar will be the grounded circuit conductor "neutral" buss bar. In the panel at the outbuilding you will need to install a new EGC buss bar and remove the bonding screw or strap that bonds the existing grounded circuit conductor "neutral" buss bar to the panel cabinet.
2) Does the sub-panel require a service disconnect besides the one in the main house?, and
The answer here depends on the number of slots available in the panel in the outbuilding. If there are six or fewer slots for breakers than you do not need a separate main disconnect. If there are more than six slots but only six or fewer breakers are installed then you do not need a building disconnecting means YET! If there are more than six breakers installed then you need a single building disconnecting means. Since you have only two breakers installed presently you do not have to install a building disconnecting means.
3) Should the out-building’s neutral and ground paths be isolated?
Yes they should be isolated. Once you have installed the separate EGC buss bar and removed the bonding screw or strap that connects the grounded circuit conductor "neutral" buss bar to the outbuilding panel cabinet you will shift all of the bare or green EGCs to the new EGC buss bar. You will also shift the Grounding Electrode Conductor that connects the panel to the grounding electrode (ground rod) to the new EGC buss bar.
If this does not fully answer your question please post back or E-mail me direct by clicking on the envelope icon in this posting. --
Tom Horne
[This message has been edited by tdhorne (edited 01-05-2004).]