Voltage between center pin of the pot and ground should be .4V right? Im reading almost 5V thats not right is it?
The center leg of the contrast pot should read 0V (gnd) when rotated fully in one direction, and 5V when rotated fully in the other direction. I assume 5v would be fully clockwise but it could be the other way around. So try rotating the pot in the opposite direction, does the center leg go to 0V? If so the contrast pot is doing its job. You should see the same voltage on Pin3 of the LCD as you see on the center pin of the contrast pot.
No software changes are going to make any difference, so don't waste any time reflashing software. You have continuity between pins 2 and 3 which is a definite problem. Luckily, pin 3 comes directly from that center potentiometer pin so there is only one PCB trace involved and it is shorting to the 5V line (pin 2). I would think it has to be happening at the LCD connector so solder suck out pin 2 and 3 and just lightly retouch them with solder.