All good info, thanks man. My girlfriend works for a photovoltaic systems distributor and they have a solid electrician in house, I'm going to have him over to check the circuit. I hadn't realized that outlet was added as an after thought but now its obvious!
I finished insulating that wall tonight and picked up the sheet rock, I'll get the wiring squared away and start hanging rock tomorrow. I can't believe there were actually smoke stains around your electrical "handi-work", I know this wiring isn't up to today's standards but I haven't found anything as bad as 6 wires taped together