Well I think I found the issue. It seems the electric space heater was rated at 30amps. Someone cut off the plug and changed it to a 20 amp 240 volt plug. The breakers are only 20amp and the line is a 12/2. So it was overheating the plug I think.....well I know obviously. The last heater was a 5000 watt type. So last night I headed up to the North Conway Lowe's and got a new 4000 watt 20 amp heater. A Farenheat garage heater. I will install it and see how that goes. Most likely keep it on the low setting. I can raise it to the higher setting if it got really cold out like it does sometimes. I just have to remember to do it!
I did put some drywall above the heater to protect that foam. Also after looking around at the foundation it did seem pretty tight. I could not see any light coming through anywhere, so hopefully that is a good thing.
Talk about spider webs in there......yuck!