Freaking Weird Electrical Problem After Engine Install
 

Okay this all starts out as getting rid of the blown motor, I brought another 13bt from rotary innovations in TX and it has a mild street port. The motor comes complete with a uncut harness already installed.

Soooo I put the motor in the car, go to plug in the harness and everything goes where it should. When I go to hook up the terminals to the battery my dash lights comes on and fuel pump starts priming but theres no key in the ignition. hmmmmmm i say, and then i see smoke coming from the engine bay. I look closer and its the waste gate tube heating up! NOT THE HARNESS AND NOR IS IT SOME RANDOM HOT WIRE TOUCHING THE WASTEGATE TUBE! ITS GENERATING HEAT BY ITSELF!

thats was the first attempt. so i fiddle with some chassis grounds and I add an extra grond from the battery to the chassis and then when i go to try again this time the smoke is coming from the ebrake cable and the fuel pump is priming without the key being in the ignition.

Also when I turn the key, nothing happens, i have spark and fuel but the starter doesnt turn

by the way the car is a 87 t2 and the motor is a 88 t2

You REAL sure you connected the right cables to the battery?

If so, then take another look at how the cables on the STARTER are connected. The large cable off the positive post of the batt goes directly to a threaded stud on the starter solenoid. The large cable off the negative post of the battery goes to one of the bolts that hold the engine/transmission together. Make sure you did not cross them up at the starter.

Black/Yellow stk cable comes off the negative post of the battery.

It honestly sounds like a wiring thing.
My Guess is that your Positive cable on the starter is not right.
That would allow the battery to put current through anything metal,like the engine and therefore your getting signs like 'heating up watsegate"
As Hailers2 said: black cable/yellow stripe is ground and goes to engine ground,which in this case is the top starter bolt.
the positive is the plain black cable and goes to the back of the starter and gets put on with a 12mm nut.
Small spade connector is solenoid(12volts switch to ignition).

you guys are the shit! thank you very much