These kinds of problems are very difficult to diagnose without being on site. Rather than guessing at a single fix, let me give you a process to follow. Think of electricity as a closed water system, with hot water coming in and cold water draining out. What we are looking for is a leak in the system. I'd start at the breaker. Check the load screw to the ground/neutral buss. 120vac ok? yes, then we move further down the line to the next possible junction point. At each subsequent point, check your hot side to neutral and to ground until you find the point where there is no longer a proper 120vac measurement. When you find this point, if you have 120 hot to ground, but not to the neutral, you have an open neutral. Turn OFF the power and check the neutral to ground with an ohm meter. It should be very close to 0 ohms. If you see no voltage to either neutral or ground, and the neutral to ground is 0 ohms, then you have an open hot. Check the input side of the GFIC and the load side in a similar method. If you try to follow a very straight logic, testing the three possibilites at each point,(open ground/open neutral/open hot) hopefully you will find the culprit. Good Luck
Without being able to see the cables as they enter the cabinet; or the ability to touch or trace them, here is what I assume is going on.
Definitions:
Grounded (neutral) from the service
A typical single split phase service is made up of 3 wires. Two ungrounded (hot) conductors, and one grounded (neutral) conductor. The ungrounded (hot) conductors will connect to the main service panel through a disconnect (usually a large breaker), while the grounded (neutral) connects to the neutral lug. The neutral lug will be bonded (electrically connected) to the neutral bus bar, and all grounded (neutral) branch circuit conductors will terminate at the neutral bus.
Grounding Electrode Conductor
This conductor is used to connect the grounding electrode (ground rod, etc.), to the grounding bus in the panel. All equipment grounding conductors will be connected to this bus.
Bonding Jumper
The bonding jumper is used to bond (electrically connect), the un-energized metal parts of the panel to the grounding system.
Assumption:
Since it appears that (what I assume is) the grounding electrode conductor terminates at the neutral bus, I'm also assuming that this is the main service disconnect. This leads me to believe that the neutral and grounding buses are bonded (electrically connected). In which case, technically, grounded (neutral) branch circuit conductors can terminate at the grounding bus.
So you have two options:
Terminate the grounded (neutral) from the new circuit to the grounding bus.
Move the green wire that is terminated on the neutral bus, to the grounding bus. Then terminate the grounded (neutral) from the new circuit, to the freed up slot on the neutral bus.
Additional Information and Code Compliance:
Number of Conductors
Since this is a new circuit, it has to be installed to current code standards.
National Electrical Code 2011
ARTICLE 250 — GROUNDING AND BONDING
VI. Equipment Grounding and Equipment Grounding Conductors
250.140 Frames of Ranges and Clothes Dryers. Frames of electric ranges, wall-mounted ovens, counter-mounted cooking units, clothes dryers, and outlet or junction boxes that are part of the circuit for these appliances shall be connected to the equipment grounding conductor in the manner specified by 250.134 or 250.138.
Which in this case means installing a NEMA 14 receptacle for the dryer, and a proper grounding conductor.
You'll have to follow the dryer manufacturers installation instructions for upgrading to a 4 wire cord. For more information see this answer, and this answer.
Since you've said that you're already using 4 wire cable, you'll simply have to terminate the grounding conductor in the cable to the grounding bus in the service panel. Then connect the other end of the grounding conductor to the grounding terminal in the dryer receptacle.
Size of Conductors
You'll also want to be sure that you're using the proper size breaker and conductors. In the case of a dryer, you'll typically use a 30 ampere breaker and 10 AWG conductors (depending on the length of the run). However, you'll want to check the dryer manufacturers installation instructions to verify this.
Best Answer
Sounds to me like a coincidence.
Grounds have nothing to do with the functionality of a circuit breaker. Meaning a circuit will work properly (albeit less safely) with or without a ground. The ground is a "safety backup" in case of a short circuit to metallic parts and pieces.
Hopefully all the work you did on the sconces is proper. Did you install and mount boxes for the wiring and to mount the lights?