Thanks for the reply. So I'll cut the neutral wire out, and not worry about that. I'm still thinking that I need to ground this thing somehow. Clearly I'm not especially electrically saavy, but I've done a lot of reading and everyone suggests for safety sake to have this thing grounded even though you are correct, it doesn't appear that my welder is grounded either.
You're right about the rod in the ground. I read that the rod is supposed to be like 8 feet long. I'm gonna take a guess that there aren't a ton of people who've gone as far as driving a rod 8 feet into the earth for a ground.