Ground wire from fender to firewall cooked.

Looks like corrosion resulted in a high resistance connection.

Not exactly sure what we are looking at but the ground on the inner fender is BS.  Not sure what that is needed for.   You should have a HOT battery cable on one side of solenoid, and the other to the starter motor.   Both cables must be in good shape and the connections cleaned.  The other terminal of the solenoid is to the ignition.  Look up a standard ford starter diagram.  the coiled wires is also BS.  Never use a coiled speaker wire or whatever that is.   Burnt wire is very bad but we don't know where it goes FROM.  No wonder the car is not running.  

That ground went from a ground on the firewall to the fender. Thats all it did and it got smoked.  It was not connected to anything else. I think it was rubbing on the relay positive side untill it wore through and ran current through the ground causing it to cook. (I saw it on tv) Yeah I thought that wire was a curly fry from arbys.  Im look at it now to see how to replace it.

That captive nut on the fender is where the rear fender splash shield bolts from the inside of the fender, and someone thought it might be a good place to put a ground wire. 

There is a primary grounding point on the frame (under the triangular piece to the left of my hand) that is a primary grounding point to the frame.  If you look on the picture, you can see the captive nut for the splash shield on the inner fender, to the right of the passenger side engine cover support.

Rocky