Short in wiring harness: can it cause these problems?

After replacing the LIM gasket, thermostat with a fail safe, tempted to replace water pump.. but I sat there staring at the car while it was running.. here are pictures of my concern:


http://i262.photobucket.com/albums/ii116/personlyplus/Mobile%20Uploads/0826000854.jpg



http://i262.photobucket.com/albums/ii116/personlyplus/Mobile%20Uploads/0826000855.jpg


I have noticed that 2 main wires have major melting on them. I am concerned that this may have something to do with the stereo and speedo not working the way they aught to and the radiator overheating even though I have taken the normal steps to resolve the issue. I dont think I am going to win with this vehicle until I address this issue first..
This is just what i can visually see without removing any conduit or digging under batteries or other places.. Does anyone know if a short or several shorts in the electrical system can cause all these other issues without throwing any CEL codes?? thank you in advance.
Would you replace wiring harness before anything else??
thanx. Linda

Any melted wires must be fixed, hard to see what caused this but they must be fixed, then see what happens.

Did u have larger pics?

Any melted wires must be fixed, hard to see what caused this but they must be fixed, then see what happens.
I patched up the wires and place conduit over them and taped in place.. still have issue with over heating.. sorry no larger pictures I have a mechanic friend trying to help as well but long distance..
he broke it down to check exhaust for water,, none found not even a slight bit
no oil in water no water in crank case..
replaced t stat with a fail safe to resolve that even being a possible issue.. it isnt so .. left with these:
water pump may not be pumping up to specs.. or clogged radiator or a bubble in one of the hoses themselves highly improbable.. but possible..

the thing is it isnt overheating at present since i have the failsafe tstat.. but after a few short trips out i have to add more coolant..so it is evaporating somewhere.. due to it being unstable and hot for it to evaporate..should never have to add coolant..
this is a puzzle to resolve .. and i am running out of ideas.. next thing i will end up doing is replace with a life time water pump.. then find a decent radiator from upullit place.. then replace each hose.. if that doesnt fix it then I give the H up..

If you keep adding coolant either you have air in the system a bad head gasket or intake gasket, assuming no leaks.

If you keep adding coolant either you have air in the system a bad head gasket or intake gasket, assuming no leaks.
I just had the LIM gasket replaced I helped and the mechanic said he didnt see any evidense that the head was bad i bought the entire kit so he would have gone ahead and replaced head if he thought we needed to go to that..
I have replaced water pump today after replacing that I do have more pressure to bleed the system before i had little water coming out of the bleeders.. only when it was real hot did i get ablast of steam but seldom ever water..
t-stat was replaced the other day and I am left with the hoses next .. there is air getting in somewhere I replaced the radiator cap 6 months ago not likely that went bad already but I am ready to replace that as well ..no evidence of external leaking any where.. my long distance friend thinks it may be the radiator is clogged preventing water from circulating properly....
i think for 10 bucks i am ready to go to the local garage and have them pressure check it.. I have replaced enough and i am running out of options at this point..