Replying to your updated message:
AxiomOfChoice said:
(2) Ah, I think I see...so each equivalence class consists of a single point: Given x,y\in E, x \sim y iff x = y. I guess this means there must be uncountably many equivalence classes, then, since mE > 0 implies it's necessarily uncountable. More importantly, don't we have N = \{ x_\alpha \} = E? I guess we can derive a contradiction from this?
Let's be sure we agree about everything so far. Using your notation:
The equivalence classes are called E_\alpha.
Now each E_\alpha \cap E contains either zero or one element. For convenience, define
A = \{\alpha : E_\alpha \cap E \neq \emptyset\}
Using the axiom of choice, for each \alpha \in A we choose x_\alpha \in E_\alpha \cap E. We thereby construct this set:
N = \bigcup_{\alpha \in A} \{x_\alpha\}.
As you pointed out, we actually have N = E.
Now let
\{r_i\}_{i=1}^{\infty}
be an enumeration of the rationals in [0,1]
And define the following sets:
N_i = N + r_i
where the addition is performed modulo 1.
Then, exactly as in the construction of the standard non-measurable set, we have
N_i \cap N_j = \emptyset
whenever i \neq j, i.e., the sets are disjoint.
Then consider
\bigcup_{i=1}^{\infty} N_i
What can you say about the measure of this set, and why is that a contradiction?
P.S. For some reason the preview function is behaving strangely - it puts the wrong stuff in each TeX section. So I will have to fix any typos after I post the message.