Ive had some strange grounding issues with my starter. Correct me if I am wrong but from the factory the starter is designed to ground through the transmission housing which is in turn grounded itself.

With my turbo setup I have a braided oil feed and braided clutch line both which touch the trans housing at various points. Both lines have been ruptured because the starter is finding ground through these lines and melting the inner teflon line, causing a leak. This has happened 3 times.

I dont understand why this is happening bc I have the factory ground wire on the trans bracket in the stock location. I have replaced the ground wire and the bolts with factory parts since they were rusty. I made sure both connecting points were bare metal by sanding them down. I even installed a separate ground wire on the starter body itself. Its mounted right on the bracket that holds the main wire harness and grounds to the battery ground.

How can I isolate the starter from grounding with the trans housing entirely? Id rather do that than making sure every piece of bare metal touching the trans is protected. My idea is to cut out a gasket from gasket paper to separate the starter from the trans. The only problem with that is once the starter is activated it will touch the flywheel which I assume would create a new grounding point. Is that true?