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Make sure that there are no other conductive paths between your garage & house, otherwise you need to add an equipment grounding conductor from the hous to the garage and treat the panel in the garage like a sub-panel by keeping the neutral & grounds separated. You'll still need 2 ground rods at the garage.
[This message has been edited by Tom O (edited October 15, 2002).]
The first, you state that the inside panel is grounded to the water line. Sadly, this location is not the service, which is where the grounding is required.
The second, you state you want to tie the wires for the garage into the outside box, below the meter. You can only do this using approved connections. You cannot install two wires under one screw (unless approved), so additional work will be required to tie in your conductors at this location.
You really should get help with this. There are alot of variables involved, and omitting any one could spell disaster for you or your loved ones.