Appliance has 120v to shell

[dana1028]

On 2 wire systems code states it is acceptable to replace 2 prong outlets with 3 prong GFCI, but in this case it does not seem to work. Any ideas??

Actually this isn't entirely correct - 250.114(3) requires some appliances to be grounded vs. GFCI protected....one such being the refrigerator [also, refrigerator mfr's require grounded circuits for their appliances].