I never suggested that the starter would "short circuit the earth". If the main terminal of the starter, or something inside, is short-circuiting TO earth, the starter will not go, and cables will become very hot. Check the plastic insulator around the terminal bolt, and that the lead, nut or washers are not touching the casing.
Before changing a cable, you should establish where it was sparling. If between the wire and crimped-on terminal lug, the crimp is faulty or corroded, so you do need to change it. If the sparking is between the terminal lug and the terminal bolt, nut or washers, you only need to take it off and clean the mating surfaces.
Ohh yeah i understand, ill make sure the nut and washer is not in contact with the casing when re fitting. The sparking was coming from the solenoid end but its hard to say weather its from the nut, terminal, bolt or crimp. Where is the solenoid earthed? Thanks again