Volvo: 95 Volvo 850 - smoking wire in steering, volvo 850, battery drain

Question
Recently when trying to start my '94 850 sedan, smoke would puff from behind the steering wheel when i would turn the key, and the car wouldn't start. It was quite clear that what was causing the puff of smoke was also causing a battery drain. I was able to jump it and it ran fine for over a week before it had the problem again, at which time it wouldn't jump (theory being that what ever was shorting/malfunctioning was persistent this time).

I pulled the plastic off of the steering column and quickly found the source of the smoke -- there was a ground wire that had melted insulation on it -- everything else looked as expected. This ground wire terminates on the casing of the ignition switch and then snakes down the steering column. I am hesitant to dig any further down the column before finding out where this wire comes from, with the hope that what is on the other end of this wire is what is sourcing all of the current that is causing the wire to smoke.

Do you know what this ground wire connects to?  II have looked at wiring diagrams for this make/model, but don't have good indication of much from them.  I found references to ground-points G205 and G901 as being in the upper-right of the steering column -- I am not sure if either of these is my wire.  Again, the ground wire that is melting is screwed into the casing that holds the ignition switch.  I can provide a picture of this wire and its connection.  

Thank you very much.  

Jared

Answer
Jared,
Since it is a ground wire and it has shorted out, that would indicate that somehow power is flowing in that wire. So there maybe melted / burned wires somewhere further down the loom. What I find is that ground by the ignition lock is for the horns and is called 31/65.