Man...that's NEVER good

[84_GT350]

On my way home from work my car died. It was right at the bottom of my street so it was so bad. Anyhow...it started running really funny...like it wasn't getting enough fuel or like the ignition was fawked up. I pulled over and slid it into neutral hoping the idle would restore itself at least enough to let me get up the street to my house. No dice. Oh, did I mention once I had it pulled ove I noticed a ton of smoke pouring out from under the hood? Yes...that too. I noticed one of the wires running back by the firewall had damn near all of it's rubber insulation burned off and the metal of the wire was exposed. So it's still there...anybody got any ideas as to what the wire is or how I can fix it?

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1984 1/2 GT350 (#842 Hatchback w/ T-tops), 302HO, Comp cams Xtreme Energy cam, Carter 625cfm carb, Weiand Stealth intake, MSD distributor, MSD coil, FMS 9mm wires, 1 5/8" MAC unequal shorties, 2 1/2" MAC Prochamber H-pipe, Flowmaster 2 chambers, KYBs, 16"x8" 4 lug Cobra Rs, Falken 245/45ZR16s

So I pushed it up to 110,
That flathead motor was about to give in,
I crossed my fingers and prayed to the lord,
Don't let me down you fuct up ford!"

"5-Oh Ford" by The Reverend Horton Heat