Edit mode object mesh offset? Not sure how to explain this I have used blender for years now, and never seen this happen. It's kinda hard to explain, but I can't directly edit a mesh, because there is another mesh around the object, like a cage. Please see the picture and let me know if you know what is happening. I just want to edit the mesh.

thanks in advance.
It looks to me like you have an un-applied sub-surface (subsurf) modifier assigned to the object. The solid part is the representation of what the object looks like with the subsurf, but since it is not applied, the solid part is not directly editable in edit mode. If you move some of the vertices you can edit, you will find that the solid surface moves, too. An additional clue that this is the case is the normal lines pointing from each face.