My friend and I did lots of work on my panel and outlets. We started off by running new new wire from my main panel (including a ground which was not there) to the sub panel in my shop. Turned the breaker box so it was right side up. The top outlet in second photo was actually connected directly to the main panel on it's own breaker and was wired correctly. We decided to switch it to 4 110 outlets and so it got new wire as well. There will still be 4 220 outlets in the shop. The two white wires in the lower box were changed to ground wire (not sure what they were before) and taped green. We worked on this for a whole day and it seems to be perfect now. Thanks again to everybody for their help.