Winston, you don't seem to be having a lot of luck with your conversions.
This is the first time I have seen a failure of this nature within the junction unit itself, and I would not advise using the bike in this condition as it could be very dangerous if the electrical fault worsens.
You should first check that this problem has not been caused by an external short by carefully inspecting the Red, Black, Blue and Yellow wires for the headlamp and horn connections on the front harness to ensure they are not uninsulated and touching each other. Also check the short cable coming from the motor side of the junction unit which is used for the reverse and pedelec functions. If this cable doesn't have the plugs fitted, check that the Red, Black, Blue and Yellow wires are not touching each other or against any metal part of the bike
(like the brake disc).
Carefully check the entire length of the harness between the motor and the controls to ensure it has not chaffed against any sharp edges or moving parts
(chainwheel, chain, brake discs, suspension and tyres etc.).
If you cannot find any evidence of an external short, it's possible that the problem may simply have been caused by a poor soldered joint causing a high temperature increase inside the molded junction unit and melting the insulation on the wires within the junction unit.
Hopefully Gary will sort you out with a replacement controller which should rectify the problem.
Alan
