Probably preaching to the choir... but just in case someone is new to car wiring and hasn't given it a lot of thought.
Generally speaking, fuses are there to protect wiring from high current sources like a battery. Think fire protection - a hot wire is a really good way to set off a gasoline leak in cases of accidents.
Fuses are rarely used to protect gear like radios/motors/lights/etc. Fuses are slow acting devices, often taking seconds to "open" when overloaded. Electronics are often fried in microseconds. So when you see a fuse on a radio, it's there to protect the wire coming into the radio if the radio electronics fail. These fuses are usually sized near the normal - e.g., a 50w radio will have a 6 amp fuse (13v*6A = 78W), giving some room for surges.
Some circuits were once accepted to not be fused, e.g., battery to starter - though this is changing. But almost everything thing else goes into a fuse then to a fuse block for distribution. The entire purpose is to keep a minor wire defect from burning up the entire harness, or catching the car on fire. Nearly all car fires these days (that aren't arson) are caused by user added circuits that are improperly fused (or where a 20A fuse was placed in a 5A fuse socket). I rented a plane from an FBO in Camas, and mid flight the radio cut out. So, when I had a chance I popped the fuse. The prior pilot or owner had decided a wrapping of tin foil sufficed to make the radio work and flew on. Deciding a cabin fire at 10,000 feet wasn't a grand way to end a flight I landed sans radio.
Basically, a fuse is just a small wire. That's it. No special metal, no special electonic stuff. Just a short piece of copper or tin alloy wire that melts just like any other wire when a certain amperage flows through it. What's known as the fusing current of a wore. A 10AEG wire has a 333A fusing current. So if you want to fuse your starter, add an inch of 10AWG to that 00 wire and you're good to go, fused at 333A. There are fast and slo blow fuses, beyond the scope, but it basically means how fast the fuse wire melts. Want a fast fuse, use smaller wire. 10 AWG will melt in about 10 seconds at 333A, or under 1 second at 1,600 amps. The wire melts because it resists current flow and heats up.
With normal use, wires get warm when current flows through them. More current, more heat. That's partly why you'll see temp ratings on wires. It helps dictate what the current rating is for a particular application. Good wire for cars is almost always rated 105 degrees C. That means the insulation won't fail when the wire hits the boiling point of water. That's combined enviromental temp plus load heating. An engine compartment is already at 90C (195F is about where most engines run). So any serious mechanic will only use 105C wire on a car. Yes, 105C wire is more expensive than wire you buy at HomeDepot (THHN is 90C until it gets wet, then its 75C); or the better short spools at Autozone are rated 80C. Check before you buy.
Those basics aside, 10AWG wire heats up as currrent runs through it. Wire is resistive, so as current flows its resistance invokes the I-squared-R rule for power. 10AWG is handy as it's about 1 milliohm per foot. At it's common 30 amp rating, that's a 30 millivolt loss per foot, and a heating effect of 0.9 Watts per foot. It's inconvenient to determine the temperature rise that adds to the wire, just too many variables, but suffice it to say a pair of 10AWG five feet long wires carrying 30 amperes is a 9 Watt heat source. If you have 80C wire in an engine compartment, it's already underrated and with the added self heating it will cook the insulation. So one needs to add this self heating factor to ensure the insulation will not fail in a given application.
Always buy 105C wire for autos as a minimum; higher if you are running something really important in the engine compartment. And yeah, you can buy teflon or similar hi-tech insulated wire that survives temps higher than 400C for running along exhausts.
I kind of like Belden... but Allied makes good wire, too.
http://www.belden.com/marketsolutions/Industrial/auto.cfm
More marketing spiff, but a few useful tips:
http://www.awcwire.com/producttoc.aspx?id=automotive-wire-battery-cable