Reply to "smoke in car"

I experienced the smoke/smell symptoms. It was the insulation on one of the ignition wires. You need a relay kit, but you also need to rebuild or replace your ignition switch. Follow the instructions here:
http://www.panteraplace.com/page125.htm

Here's a pic of my switch and why your wires got so hot and began to melt the insulation. None of these contacts should be black. They should all be bright copper. You don't necessarily need to have the contacts re-plated as Mike states in the link above. They can often be polished back to like-new condition.



Here's what the switch looked like after I cleaned the contacts with an electric toothbrush and polish.