Before key turned; power at starter?

I installed a new (rebuilt) starter into my k2500 6.5 diesel chev 4x4 truck, started hooking up battery #1 and the solenoid part of the starter started smoking bad. I disconnected the battery and removed the starter - the solenoid was fried; melted.

Question - Before the ignition key is turned, is there supposed to be power at the starter? Or is there always power at the starter, but controled by the little wire.

No wires were crossed; starter had not been dropped or overtightened. comments would be appreciated.
Ben

probably a bad solenoid on the rebuilt. One wire at the starter usually goes directly to the battery and then a smaller wire(chances are its purple) engages the starter and should not have power until the key is turned to the start position

Hmm. Found out there was a tang sticking out on the starter cable that wasn't 90 degrees - it must have stuck out enough to touch the other contact and shorted it out. Not too impressive; the only way I could have known was by using a mirror on an extention after the install. There go a few more hard-earned dollars.

I'm sure it still will cost me less than the mechanic at the dealership though - they wanted $560CA for the starter plus $90CA for installation. I was able to get the starter for $245CA and installed it myself. Now since I burned out the solenoid it might cost more, but I think I'm still doing better than having the mechanic make the repair!