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I popped off the breaker cover and it looks like there is only a two wire, black is on power and white is on the ground bus with all the others.

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That eliminates the possibility of this being two circuits sharing a neutral.

Did you happen to check the neutral and ground connections to the neutral/ground buss?

I'm having trouble figuring out how you could have voltage between the neutral and the ground if they come together at the neutral buss.
As I said earlier, we are getting deperate.
Suggest removing the fixture and check again.

Non of this is logical, makes me think that there may be something going on inside the wall we can't see.

I'm thinking.

The neutral and the grounds do go to the same buss don't they?

You said earlier that you check the switches for continuity. Did they both check out O.K.

Can you post pictures of the wiring in each box?

Okay, I got it working, but it's pretty screwed up, to be honest I just want to make sure my house isn't going to catch fire... So the only way I could get the lights to come on was to attach my neutral(black is being used as neutral from source) to my ground straps in the box. I decided that this was borderline okay, clearly not to today's code, but working well and I don't think it's a risk. I am kind of unclear of how electrical fires usually happen because I thought the breaker would just trip?

After I figured that's the only way the source would power the light properly, I was able to connect my switches in a typical three way switch configuration.

I am measuring 30V to the light when it is off, and 118V when it is on. I can draw up a wiring diagram to clarify this if anyone is confused about what I am talking about.

Thanks for all the help!

You have created an even more serious condition by using the ground strap as a neutral.

You will assume all risk of injury or damage to the building.

Why not hire an electrician to solve your problem?

Well because I can't afford an electrician... that's why I do anything myself, because I can't afford to hire a professional.

Isn't this how homes used to be wired before the additional ground strap was put in place?

Then keep your insurance paid up.

No, that is not how homes were wired before.

Haha yes my insurance is paid..

Seriously though, is it worth taring down my drywall and running new cables? The neutral was grounded when I moved in, which makes me think they are all that way because every three-way switch in the house isn't working.

It is your home, it is up to you to decide if it is worth having the electrical wiring done correctly.

An electrician usually knows how to wire old work without removing drywall.

Okay, I'll get an electrician over to have a look and advise on what I should do.
But you wouldn't shut down the circuit at the breaker in the meantime would you? Is it that serious?
I'm cheap, but I'm not stupid and I won't risk injuring someone because I can't afford to do it right.

I would disconnect the wire connected incorrectly.