Sorry, must have totally missed this earlier.
You are right. When my boot tore and I didn't replace it relatively quickly, junk got into the green cup and as things moved around without grease the green cup got pitted and scarred. The green cup is just that; it's a straight walled "cup" that has grooves in the walls. Can't think of the best way to put this, but the grooves run from the bottom of the cup up to the lip of the cup. When everything is together in the VX the cup lays on it's side so the grooves run horizontal (parallel to the ground). The balls of the CV joint them seat into the grooves so that they can move in and out (parallel to the ground), but can't go anywhere else. As the cup rotates the balls must rotate with it because they are in the grooves, and that is what transfers power to the wheels. Does that may any sense?
Bart has a great write-up with pictures, and as "they" say; picture are worth a.....you get it:
http://www.vehicross.info/forums/showthread.php?t=21040
Like Billy (Triathlete) said, the front axle was removed and sent to a machine shop where they welded up/ filled in any of the pits or scars and then re-machined everything back into spec.