BMW Repair: 1986 bmw325e engine fire, oil leaks, engine fire

Question
i recently got my bmw from a friend. there had been a small engine fire. Although,it was a small one and from what i've seen it looks as though it only burned the plug wires, the wires coming out of the idle control valve, and a hole in the coolant holder. i replaced the plug wires and twisted the wires together for the control valve. i got it to turn over and it runs fairly smooth. the only thing that seems wrong is that it died on me a couple times while i was trying to shift.

the question i have is what could have possible started the fire in the first place and how do i prevent it from happening again. a friend of mine suggested a fuel leak. what is your advise about it?

 Thank you very much for your time.

Answer
Most fires on the 325e are caused by fuel or oil leaks.  The cold start valve(on intake, above plug wires) may be leaking fuel.
 I would suggest you replace all the fuel lines under the hood including the ones going to and from the intake, being sure to get the clamps back on properly.
 If you can see any type of staining on the cold start valve replace it with a new one.
 Also correct any oil leaks.