You are on the right track, replacing cables. The reason the ground wire to the chassis burned was because the ground cable to the engine was not making connection and the small chassis wire couldn't handle the load.
As for the engine trying to crank when the cable is connected, look carefully at the positive cable where it connects to the solenoid. It may be attached in such a way that it is touching another terminal, causing the starter to kick in as soon as the battery is connected.
If all connections look good, possibly the starter solenoid contacts are welded from the cable failure causing high amp draw. There is a small wire on the solenoid that gives the signal to pull in the starter. Try disconnecting that wire, see if it still wants to crank. If so, replace the solenoid.
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Today's Featured Article - Earthmaster Project Progress Just a little update on my Earthmaster......it's back from the dead! I pulled the head, and soaked the stuck valves with mystery oil overnight, re-installed the head, and bingo, the compression returned. But alas, my carb foiled me again, it would fire a second then flood out. After numerous dead ends for a replacement carb, I went to work fixing mine.I soldered new floats on the float arm, they came from an old motorcycle carb, replaced the packing on the throttle shaft with o-rings, cut new ga
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