You guys were right. Mr. Schulze basically said that I was using power cables that are 4 times the allowed length. Funny thing is that in the instructions the max length is 8" and 4 times that would be 32" and I don't think I have or would be able to stuff 32" of wires in my truck. Look at the vide and tell me what you guys think:
http://www.youtube.com/watch?v=EAtcnCTdjAI. That doesn't look like 32" to me. I've seen people use longer wires than I did and I used the same length wires with other ESC and nothing went wrong. He also said, "A new controller would also fail within minutes or even seconds". We BS to that as the Schulze 18.97 ran fine for a few runs and the only thing that might have caused the fire, was when it rolled backwards and I tapped the throttle and poof. Also, BS again to what he said as I'm now using the much smaller 18.61 with no issue yet and to make things interesting, it's the older version of the 18.61 with 2 capacitors instead of the new version that have 4. So there you have, IT'S MY FAULT!!!!