I can say you won't be disappointed with the combo... ;)

I would go for the extra caps - I can only attest to my experience 3 MM burnt to a crisp - 1 due to a rotor shearing and 2 no idea - All running good lipo setups - Enerland 5k 4s etc - The extra caps provide a buffer and help the poor MM's cope.

I would take a good look at the motor your using! I had an 8xl that I'm pretty sure took out an otherwise perfectly functioning MMMv1. Ran perfectly fine the first 4-5 charges, so it had almost 2 hours on it. The 8xl got hot, demagged, and took out the MMM.

Receiver Test Results! :

Receiver is fine. Ran through a full 8000mah TRC Pack on my E-Firestorm at the local track. No glitches whatsoever. (E-FS was running a Spektrum 3.0 2.4ghz before i put my 3PM receiver in)

Try running the motor on another esc, I wouldn't doubt that you smoke that esc too. If your having this many problems I would take a wild guess that it's not all on CC's shoulders. I'm still thinking that you have a bad component and my money is on the Feigao 8xl. When mine went it took out my MMM, motor still worked when I hooked it up to my MM but the MM got real hot real fast. When I got around to taking it apart I found that the rotor wouldn't even hold it's own weight against the fridge! Try a betetr motor, Medusa's aren't much more than a Feigao but are way better quality. Feigao is an entry level motor and it's good for giving you a taste of power but everyone knows they run hot and don't last forever.

Yeah, a demagged motor won't generate the counter-EMF from the magnetic fields cutting the coils. So, impedance is a lot lower, and therefore current is a lot higher even though the motor isn't putting out any appreciable output. While this is happening, the user gives more throttle to compensate for the lack of power which causes more useless current flow.

even a broken motor wire would explain the issue wouldn't it?

Okily doke guys :)

Will take your advice and test the motor out next. Need to wait for an ESC though.

Have spoken with the friend with the exploding MM and about his experiences with the exploding BECS and MM. What he's told me is that the car was glitching pretty much exactly the same as mine. He blew 2 CCBECS in the space of 2 weeks (they were working fine for about 5-6 months, one was powering a fan, one was powering the rec. After the truck one died, he took the fan one and used it for the rec). He experienced the EXACT same thing as me (just before his one went firey) .. huge glitching, no power.

I was there with him on the night his one went down; we were in this underground carpark in the Sydney CBD.
We both had Emaxx's. Mine was fine at the time (MM+CCBEC+4s TRC Lipo), his was glitching (MM+CCBEC+4s Maxamps).
The surface of the carpark was really slippery. Good for drifting :). so thats what we did (or tried to do). Was good fun for about 10 seconds for him. His one caught fire after the second turn.
Anyways, we just stood there looking at it while it flamed up. We had seen those clips of LIPO batteries exploding and didnt want to be in the near vicinity if thats what was going to happen.
Anyways, after watching the thing burn for a bit. I thought "damn that would be a waste of battery!" so i ran over there with a milk tea bottle in hand and poured the thing in through the underside of the body. Good news is that the fire was put out before anything exploded (besides the MM of course :)) bad news is that the whole car smells like burnt electronics.

Anyways, fast forward to about 3 weeks ago. Friend receives new MMM V2. Puts it in his car. Life is great. He runs the same 8XL as me!. Ill throw my engine into his truck to test out my engine on the weekend when we're both free. Will have a bottle of water in hand just in case anything sparks up.

Water might not be the best thing to pour on to it. A C02 fire extinguisher might work better.

Okie doke :)

Have justed tested my motor in my friends MMM E-Revo and it works perfectly fine. So that rules out the reciever and the motor.

Battery cells! I took out 2 novak supersports back to back because I had a bad cell! Long time ago though.

You mentioned you had a BEC with this setup, how did you have it wired exactly?