It sounds as though the previous owner did more than a little extra wiring. Here's what the starter circuit should look like. There should only be a rust colored wire (a fusible link) and a purple wire leading to one of the solenoid terminals, and the large battery wire leading to the other. I'm guessing that he may have had problems with the battery junction block (the junction near the battery) and ran a wire from the starter to it. I'd start by eliminating that wire and seeing what problems that cures and/or creates.
(Edited for spelling)
[This message has been edited by Bloozberry (edited 04-07-2012).]