I have seen several FD's with under hood fire at car auctions, is it a gas or oil problem?

I have seen this problem on 93 and 94 cars .

How can be avoid?

 

My first guess would be the Fuel Dampener. Its prone to leaking fuel. It starts with a gasoline smell coming from the engine, which means fuel leak.

 

There are known issues with the underhood fuel components. If you haven't already done so, check to see if your FD has had the recalls done. If not, RUN, don't walk to your dealer and get it done. When I had my engine replaced I knew there was some leakage because of the smell under the hood and my mechanic made sure to replace a whole lot of stuff to keep it in good condition. I began carrying a fire extinguisher in the car shortly after I noticed the smell. I recommend that *everyone* carry a HALON extinguisher (not dry powder, that stuff will ruin the car...) in their car and use it at the first sign of fire.

FD's are becoming more and more rare, and even if you have full coverage, it'll be tough to find one that's either in good enough condition to buy, or hasn't been modded all to hell (we like to do it ourselves :p)