During the building inspection of my home that I purchased one outlet tested hot reverse, the building inspector said I simply needed to switch the wiring. i.e. Black to Brass and White to Silver. He also advised me to put in a GCFI outlet since it was in a bathroom. I proceeded to do this following the instructions given. After switching off the breaker and disconnecting the wires from the outlet I noticed that there were two other #14 wires that are interconnected with this outlet (providing power to a couple of switches and light bulbs).
I tested, black and ground with my multimeter and noticed that they seems to be shorted together!! But No power, Since I am not an electrician I was relunctant to continue or switch the breaker back on. What do you suggest?

You may be reading the resistance of bulbs or a fan. Remove light bulbs and unplug/disconnect fan to see if "short" goes away. May just be resistance and be OK.
Turn on breaker and try. Then Test GFI.

Thanks, you were right removed the light bulbs and short went away. Installed the socket and everything works fine

Good Deal.