So step 4:
I think what you are telling me is that I need to disconnect the two blue (one is solid blue, other is blue with a white stripe) wires from the bottom and the green from the top. I then connect these wires together closing the circuit and removing the VR from the loop. If this works, then I know the wiring is good. Thus, likely issue with the VR.
If this doesn't work then there is an issue with the wiring. This would also mean we have not ruled out the VR as an issue.
