Romer said:
Allright pinhead, I am a lousy Electronics Engineer I knew that. Must be that I am management now.
Are you an EE? I was just funnin wichyou. If the ground is loose, it will arc and get REAL hot locally, but not the whole wire.
For finding the short:
It starts smoking only when the key is on, right? Which switch position? If not you have a different problem.
(Edit: You don't have to wait until it smokes, it should peg the amp meter in the dash.)
If it smokes in the Accessory position, then check the light blue wire with a red stripe that goes to the fuse block. If it only smokes in the Run position, check the Black wire with a yellow stripe. If it only smokes in the Start position, check the Black wire with a white stripe. this last wire doesn't go the fuse block; it goes directly to the starter solenoid. By check, I mean disconnect the wire and see if the problem goes away. If so, then the problem is after the wire you disconnected, like the fuse block or solenoid is shorted. You replaced the solenoid too? If so, it is not likely the problem. Try removing the fuse block from the fire wall make sure that the contacts inside the box are not touching ground. The problem is not after the fuse or the fuse would blow.
If it doesn't go away, you have to follow this wire back to its next connection at the ignition switch. Check that the insulation is intact and not shorted to ground. This means taking apart the steering clumn and getting into the switch. Disconnect the wires at the switch and see if the problem goes away. If so, the switch is shorted and needs to be replaced.
If the wire gets really hot, it would be better to diagnose it with an ohm meter. You can disconnect the wire at the battery + lug and alternator B lug and pull all the fuses out. Check the resistance on battery wire to the ground. If it is zero with the key on, it is shorted. Then start pulling the wires described above and look for where the resistance goes up to infinity. the short is after the wire that you disconnect.
One more hint: the wire going from the switch to the solenoid is a much smaller wire. If this circuit was the problem, then this small wire would smoke and not the big one. chances are, it is not a short in a small wire.
Disclaimer: the wiring diagram I have is for an '81 and I don't know that the color code is the same, but it is for my '76. The diagnosis depends on your description of the problem so the more you can tell us the better.
Good luck. electrical shorts are a biatch.