Glad to hear your car did not completely catch on fire, that must have been kind of scary!
I can't really help with the second part, but as for the first issue I believe it is what was posted in that link Gall757 gave. Those little resistor coil things get really hot and if they are covered in dead leaves and stuff it can cause a fire. I cleaned mine out last year, I actually took out both the resistor plate/coils and the blower motor so I could clean the heater out better (blower motor not as vital to remove and clean behind I don't think).
Behind the coils wasn't too bad on mine, but still some pine needles to clean out
Behind the blower was quite the mouse nest
As for posting pictures there is a button on the bottom of the page to
Pennock's Image Poster that takes you to a little program (and instructions on how to set it up and use it), it makes uploading images to use on this site easier and you dont have to get a photobucket (or any other image host) account. Also using it helps
fight the red x