Ok, few days ago I posted that I couldnt get my car started so I tested the battery...it was completely DEAD.

So I went out and bought a new one, when I tried to install it, sparks started flying everywhere like mad on the battery terminals.
What can be wrong????

 

Sounds like a dead short somewhere, start tracing the wires till you find it, or get someone who knows how, bad wires could burn up you car!!!

 

Ill get someone to take a look at it, but in the mean time, what should I keep an eye out for? Which wires etc...

 

Inspect all the grounds. Start with the big 3 under the hood.

Back of head to firewall (passenger side head, its a big ground strap, about 1/2" wide)
Battery to fender (right off the neg batt cable)
Battery to engine (If you can't find this one....)

When my battery sparked like crazy, both the batt. to fender and the head to firewall were rotted out.

 

Disconnect the alternator and see if it still sparks.

 

Ok, I finally figure it out.

When I removed the heater box, for some reason I had the ground wire in the "connection box" and it was aligned with a live wire... I unplugged that and everything was fine.

The alternator was OK tho:P
Thanks everyone for your help