Rizwan: Further to Nigel's message. I note that the turnout switch is in the halfway position which should be impossible because the spring and magnet design of the actuator cause it to snap between fully open and fully closed. When you were testing it, was it upside down as in the picture? If so, the point rails may have been unable to move properly because they were dragging on the benchtop. If not, the wiring may have impeded the switch operation when you put the turnout right-side up and compressed it, as Mick points out.
I also note that the decoder scorching was caused by something inside the decoder melting through the plastic sleeve. Assuming your DCC system is OK that can only have happened by wiring it up wrongly at some point. The incorrect connection may have blown something which resulted in the decider short circuiting the DCC system when it is was reconnected correctly. For example, the output of the decoder is probably an H-bridge arrangement of transistors and if one transistor fails to turn off (due to damage caused by incorrect wiring) then the H-bridge will be a short circuit when one of the other transistors fires. While the picture doesn't show everything, the wiring to the actuating coil and the coil itself looks OK so I would expect a new decoder is all you need. A short inside the decoder would explain DCC tripping off.
Jan
