The same exact thing happened to me when I did the battery relocation tney would get really hot, then I would start to smell smoke. I don't know about your mustang though it seems like it a hit the heap now(if you know what I mean) reffering to the trash heap, in other words it's a gonner. As for holding the battery pack I used velcro and it worked awsome (plus I used it to mount a body top on it as well it works like a charm).
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