No. what you did was prove that there is continuations circuit through the wiring.

What you want to know is, is there a connection between the hot and the neutral, or the hot and the ground within the wiring?
Normally such a connection would cause the circuit breaker to trip. But let's just suppose that a nail from the siding did hit the wiring. Let's suppose that the nail hit one wire and the point or tip just penetrated the insulation of the other wire. Let's suppose that that connection was not good enough for enough current to pass through it to trip the breaker, but was good enough for a very small current to pass. That would cause the GFI to sense a fault and trip off.
That is what a GFI does. It compares the amperage coming in and the amperage going out and detects very small differences. It does not detect large differences in current, it detects very,very small differences.

I am betting you have some resistance between the neutral and ground between the 2 recepticles.
With no meter, I would hook everything up with the neutral disconnected from the load side of the GFI, Turn power on, be sure GFI is set and working, If it doesn't with just the hot, the Hot is a fault.
If the GFI sets and you momentarily touch the Downstream Neutral to the Load side GFI Neutral and it trips it IS the neutral at fault.
I have found a short in romex caused by the romex connector being too tight.
Good Luck, getting closer, keep us posted.

Thanks for the suggestion Stratmoando, I tried loosening the clamp that holds the wires into the box and repositioned them, then put a standard plug at the end of the circuit instead of a second GFI and voilà... everything is working fine.

Stramando and hkstroud, I really appreciate all our your assistance.

Thanks Again!
Derrick

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I tried loosening the clamp that holds the wires into the box and repositioned them,

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That an indication that the wiring under the clamp has been damaged in some manner.