smoke and then shut off

[Boomsday]

I have a 2002 ex Eddie Bauer 4.0l and while driving down the road my low oil pressure light flashed and the temperature went about 3/4s of the way up and the vehicle died, and then a huge puff of white smoke came from under the hood, I pulled over and let it cool when I noticed there was some burnt foam and what looked to be a wire with a torx screw holding it down but the wire looked burnt as well. Also it sounded like something was clacking as I was pulling over

What would cause this?

I took some pictures but have to find a way to post them

 

[Number4]

Use photobucket or the like to post links to your pictures.

 

[Boomsday]

Not sure where to go from here

 

[Boomsday]

I pulled the knocker sensor out, and the wires are Fried, any idea as to what would have made that area heat up like that?

 

[Number4]

Was oil leaking there and combusted? Which would require 400 degrees or so. Seems unlikely.

Could rats have made a nest which melted? If they'd used plastic etc. Not sure what it was you pulled out of the area.

The clacking was most likely a knock, as the knock sensor wire was destroyed and the sensor no longer functioned.

 

[Boomsday]

Was oil leaking there and combusted? Which would require 400 degrees or so. Seems unlikely.

Could rats have made a nest which melted? If they'd used plastic etc. Not sure what it was you pulled out of the area.

The clacking was most likely a knock, as the knock sensor wire was destroyed and the sensor no longer functioned.

I didnt notice any leaks of any kind, it is a daily driver and has been for the past 3 years so not sure if any rats or animals could have built a nest. I purchased a new knock sensor today so hopefully that fixes the issue.

Only thing im not sure of is how/why it melted in the first place