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Not sure what you mean by: "cable had arced the screw into the battery"
2 things come to mind, water in the PCIII connectors, and the battery cables were not tight. Lot's of guys have had this issue, clean them, use a little dielectric grease to keep water out and maybe a wrap of tape around them.
The fact that adjusting the battery cured it for a bit is a big clue.
I know it's a little late in the thread but I've seen where a loose battery connection caused a relatively constant arc that melted/welded the cable end to the battery. It was impressive.
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