Mariner 20 electrical problem/fire

[ballen9898]

I have a 1987 Mariner 20 HP outboard. Yesterday, when we were running across the lake I heard a "clicking" sound coming from under the cowl. Later, I decided it was something arcing because, at the doc, I pulled the cowl and when I tried to start the engine there was a huge spark and even a flame coming from under the starter or solenoid area. The starter is still turning the engine but as soon as I turn the key, I immediately smell something burning. Is this a voltage regulater or solenoid problem? All of the connections and wires appear normal and there is no sign of bad insulation, burned wires or melting anywhere.