Dead Batt + Smoking Bolt= a short? (Update)

[2001 Sport 4x4]

I got a 2001 sport with 2 batts(one under the hood the other in the back) and it has been like this for about 5 years and I have never had a problem. I went to start my truck today( after sitting for 2 days)and it was deader than a doornail, flat dead, as if the batt was disconnected and nothing was left on. I went to jump it with my girlfriends car and when we got it hooked up the bolt attaching the fuse panel to the fender started smoking... so i unhooked it. I'm guessing that there is a short somewhere in the fuse panel and that is why my batts are dead and the bolt start smoking. I don't know if it has something to do with the rain cuz like the rest of the north east it has rain for two days straight. Has anyone else experienced anything like this? Im gonna look at it a little later and see what i can find but any ideas would be great!
Thanks

 

[2001 Sport 4x4]

Update

Ok so i unbolted the fuse panel from the fender and flipped it over. What I found is the first pic were the power wire to the fuse panel is pinched between the panel and the bracket instead of tucked inside like the rest of the wires. I separated the panel from the bracket and sure enough the insulation on the wire was cut through. So the bracket was pinching the wire and over the 10 years the truck was driving around the it was rubbing the wire and... ya A++ Ford. My girlfriend put it the best "My truck was made the Friday afternoon before a long weekend."