Alright, it is definately VCT. This sucks. Ford, in the year 1998, decided to use a type of wiring that we stopped using in Naval aircraft in the 1970's. This crap is falling apart!!! This is ridiculous. I started checking the wiring harness, and the insulation just falls right off. Pulled the "protective" boot off the VCT Solenoid. Found that the insulation on both wires has completely rotted off and was allowing the two to contact. There's a lot of corrosion on the wire too. Looked around the engine bay some more. The insulation on the positive side of the battery....coming off.... looked at the coil pack, some of it's coming off there too.
I'm surprised there isn't a recall, this could be a serious safety issue. Then again, it's probably cheaper for them to settle outside of court than it is to pay to replace a full-body harness. For some reason, Fight Club comes to mind.