I have 5 years of experience working for an outsourced company in hosting business. My expertise should help you in troubleshooting and eventually fixing the issue. You can mail me at hostingfreek at gmail dot com for further discussions on this.
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update on the issue. We did receive help from someone on this thread.
however, while they did help a lot, Godaddy admitted to screwing up the server from the very beginning, so we have to deal with Godaddy for the mess they created, but further we have another issue....see below: