Here, when installing them, the code states that you must use 3/14 or 3/12 wire to each receptacle, where the ground wire must be attached directly to the box and stop there. The red conductor, which is taped green, attaches to the ground lug on the outlet.

No difference here. We have, and I'm sure you do too, an IG cable that has a black, white, green and a yellow/green for the IG. Common practice is to reidentify the red of a 3 wire cable as you say.

What I meant by this was BEFORE any wires were connected to the outlet. When testing for continuity between the ground lug & the neutral lugs, there would be no continuity.

As long as the other end of the cable is connected there will always be continuity between the neutral, ground and the IG if it's wired correctly. As I said above they are connected together at the service so you have to have continuity. If they didn't the ground would not be able to provide a path for any fault current and trip the breaker.

The only difference between the neutral and the ground is the neutral normally carries current, the ground does not but can if there is a fault between the hot and ground. Consider an older electric drill for instance. The green ground from the receptacle is connected through the line cord to the drill housing. Should there be a short from the hot to the housing the ground would carry the current back to the breaker panel neutral/ground junction and trip the breaker protecting the operator from being shocked.

No receptacle should never have continuity between the ground screw or yoke and either of the current carrying contacts (the silver screw and the black or brass screw) so what you say just doesn't make sense.

-Hal

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