Ok so I'll just reply without a pic but I'll link to my gallery.
Medved, I don't understand what you mean by "the PE connection"..PE? What is PE?
It is an abbreviation of "Protection Earth", often called "Grounding" (although it does not necessarily mean a real ground connection). It uses to be the green, green/yellow (alternating stripes along the wire) or bare (not insulated) copper wire.
This conductor does never carry any normal load current. It's main and only purpose is to carry a fault current, when somewhere the insulation breaks, and so prevents dangerous voltage buildup between different accessible metal parts (even of different devices) and/or ground and in case that fault happens, ensures the circuit protection devices (GFCI or just regular circuit breakers or fuses, or in special installation even other type of devices) switch off the power into the affected branch.
So this wire interconnects all the accessible metal parts (metal body, cover, structures,...) together and to a grounding electrode (in insulated networks it could be just an interconnection, but these systems you won't find in homes; in some older installation it is grounded via a sensing coil of the main protector, but that system is no longer used in any new installations).
Some newer devices (mainly power supplies of many IT devices or so), whose won't need the PE for safety reasons (as they use double/reinforced insulation construction anyway), use this conductor only to connect an EMC shield and to carry out the leakage currents from the RF suppression capacitors (those leakages are usually safe for humans, but the charge of the RF suppression capacitors could be deadly for the sensitive electronic), so the PE interconnection gets an extra, non safety related function as well.
This is the actual ballast of the cobra head. Now wired for 120v. Previously, it had a black wire & a red wire at the block, for 240v (N.America). There was a sticker "wired for 240V" on the porcelain block which I removed. There was no green wire coming in!
And this is the Ballast.
Simple question(s): Do I connect the green wire from my 120v line to the aluminum fixture? And do I KEEP or REMOVE the green wire from the shell to the fixture with my 120v connection?
Yes, the green wire is connection of the PE, so it has to be connected to the fixture body and preferably to the ballast core as well (as the ballast is the "prominent" component, where the fault is most likely to happen).