Any idea what could be causing this? Melted ground wire.

[PerilousActs]

So I just picked up a new shell for parts (sr swap already done, but it's super rusty. I'm going to be moving parts to my other shell) and I am trying to get everything in working order before I toss it in my other shell. I came across this today:
http://photos-g.ak.fbcdn.net/hphotos-ak-snc3/hs084.snc3/15139_1182469320874_1202430096_30493619_3125535_n. jpg
What that copper should look like... (my other shell)
http://photos-b.ak.fbcdn.net/hphotos-ak-snc3/hs104.snc3/15139_1182469560880_1202430096_30493620_3158441_n. jpg
This is right under the passenger side fuse box.

Regardless, that wire doesn't seem to affect the starter's operation, though it does start to smell while turning engine over. I'll still be digging around for the cause of it more tomorrow though.

Could it be from the battery relocation? Perhaps it's not grounded enough in the rear so too much current is going through that ground cable? I haven't dealt with this kind of thing before so any ideas would be awesome.

Another question I have: Since this isn't part of the engine harness, should I even bother investigating it before I put it in my other shell? Perhaps it is 100% unrelated?

[Sileighty_85]

Your pullin too many amps through that ground,

You need more/clean other grounds

Thats why its smoking

[PerilousActs]

For future reference for anyone searching: If you have a rusty shell, ground the relocated battery to several locations that are clean.

[brian3676]

Is that coming off the lower harness if i can see right? If so thats your altinator ground

[PerilousActs]

Yep, you are correct. That is exactly what it is. I solved the issue of the wire getting super hot by properly grounded the relocated battery. The previous owner never had a good ground and I guess it barely worked until the wire could no longer take the extra load.