I've also got a job for a 2001 Dodge truck by a local rancher that has just had a starter fire. When I inspected the truck tonight the truck does indeed still start and run but watching closely I started see white smoke from the starter again. After crawling on my back and looking up there is something damage in the brush plate and shorted out. Which then allowed it to ignite the oil and fuel slobbered on the engine. There is a few 3rd party wires that are burnt but nothing system critical. So when I get back down to doing the job I'll take my camera along and pop some pictures. Safety sake I left the truck with the batteries disconnected till I get back.

Looking forward to the pics....

Sorry there really isn't any pictures to take. There was a hot spot burned in the case from the inside. Right in the brush area of the cap. The drain tube is burned off from the fire. So I pull the starter and the owner has a lifetime warranty with the local NAPA. He's replaced several starters that I know of. Basically I got to repair two wires for aux fuel pump back by the tank (stock carter) and install the new starter.

So are these starters getting fried from internal issues or from oil and grime getting in them?

Could be both in this case. I've seen this truck down at Lindy's shop previously for fuel leak issues. But nothing right at this time it was dry and not leaking.

Interesting that in 400 k miles my first gen is on it's second rebuilt starter. Doing well. The auto parts guys told me the better rebuilders and know by how many get returned as compared to others. One rebuilder was getting an inordinate amount of returns at one time. It was called Ultima is their name.