I have an 02 XE, lights starting coming on, such as brake, battery, ABS, seatbelt, obviously has nothing to do with those, but then shortly after it died. Figured it was the alternator, took it off, and sure enough it have caught fire, not much, just at the connecting point between the alternator and the wire harness. Replaces both, drove it once and lights automatically came back on, the thing blew up again!
My next step is gonna be the fuse, but I have a feeling it is more than that. Any advice?

I'm betting you've got a short somewhere in your wiring.

Catching fire sounds like a symptom of a short 100%.