repairing wire insulation inside box

Greetings,
What does the NEC say about repairing damaged wire insulation inside of a utility box? Is electrical tape acceptable so long as the colours match? Is heat shrink tubing acceptable? Should I wire nut be used even if the wire is shortened to only a couple inches instead of the minimum 6? Is the only acceptable means to re-run the length of cable between the two boxes? What is legal and what is the best most accepted way even if it is not strictly legal?
Thank you for your time, William
PS: Scenario is that a tenant decided to replace an ungrounded receptacle with a receptacle w/ ground hole (but still without true ground). Apparently the tenant had the receptacle around but no 2-3 prong converter and no car. They needed the ground plug for a power strip for the entertainment center they were setting up. The tenant did not properly pack the wires back into the box and put an outlet mounting screw through hot wire insulation resulting in a short (but no damage to the copper within the wire). Yes, yes, I am well aware that what they were doing is wrong.
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I have seen black insulating tape used. I have seen insulating heat shrink used. Your property your choice of repair.
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Electrical tape or heat shrink should be ok as long as you maintain the same class insulation level as the wiring. It should be printed on the existing wire, either 300V or 600V for house wiring. If you're not sure just wrap the wire a few more times make sure its thicker than the existing insulation then if you like put the heat shrink over the whole thing.
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On 10 Aug 2005 07:20:01 -0700, " snipped-for-privacy@wdeans.com"

As long as the rating matches or exceeds the insulation on the wire, you can use electrical tape (most does). I know this because I was prepared to take exception to something I saw a contractor doing but had the presence of mind to check the code book and found he was right! A little research saved embarrasment in that case.
Dan
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Just out of curiousity, what does the NEC allow if the insulation (but not the wire) is nicked outside of a box -- i.e. along a run.
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