http://www.turboford.net/ubb/ultimatebb.php?ubb=get_topic;f=2;t=048418
Hook the ground strap to the engine block. Use a new one. That one looks like A$$. There should be another ground at the bottom side of the firewall near the transmission tunnel for the bell housing.
You'll want to replace that burnt wire on the starter solenoid too (the red/blue one). It goes to a pigtail connector that goes to your charging system. The yellow/black wire....I can't really tell from the pic where it goes....