Would it be worthwhile to A) start garlic inside and transplant in March to be harvested in the summer or B) plant later February or first week of March? 

The plan so far is to set a cold frame over where I want to grow it to warm the soil a bit, plant, see what happens.   

I will try store bought organic garlic in a container at first to quarantine it for now as a precaution. 
Has anyone had disease issues going this route?  If so did it show immediately or multiple generations (growing seasons) down the line?

Has anyone ever started garlic inside? 

Ive read the 'show your garlic bed' threads but my questions seem a bit... unusual from what I read in those threads.

I'd plant outside now, or wait another year. I'm Zone 7 and planted Elephant garlic mid December last year and it did great, full bulbs in July.  I put horse bed compost in the holes to better ensure growth, which I have not done with my other types planted in Oct and Nov.  I would not transplant garlic, the roots get long and stringy and while you are not likely to kill it, it would be yet another set back.

ETA:  If you get any more soil freezing you may want to cover or mulch to extend rooting activity.

ETAII:  If you take the cloves and sit just the base of the garlic in room temp water (total submergence can lead to increase fungi/rot) for 2 or 3 days you can kick start the rooting and buy some time.

seems you and I are in the same zone. 

I guess I will try to plant once it dries out a smidge.  I do have some chopped straw that I can use to cover. 

I usually only mulch if we have an extreme deep freeze, or at my other location on mountain side where the soil drys out quicker.  With the winter we are having so far you may want to consider planting the bulbs 3" below the surface and burning some paper/cardboard above.  You get the benefit of deweeding, nutrients, and the blackened soil will heat up significantly more.  Do what you can to limit frozen soil and your garlic should still produce well.

I put extra large cloves of garlic in on Thanksgiving in Zone 5 (KC Area).  The shoots just started coming up a couple of weeks ago and
now they are around 3"-4" tall and growing in 30 degree weather.  Damn things must have anti-freeze in them.  I also planted a row of shallots to see if they would be something else to grow in this area.  They still have not come up, but the ground looks like it is showing signs that something is rustling beneath the surface...