I finally tore down the wall to the bathroom. The wall next to the trash can is down as well.
I found that the Kitchen and Bathroom were wired by stapleing the wires to the wall and just covered by a 1/4" Sheet of drywall. YIKES!!

Above is the Kitchen wall.

Above is the bathroom ceiling, notice the screw throught the wire....That was holding up the drywall.
Here is a close up:
Notice the smoke on the cable sheilding and the upper left corner of teh image is a black spot on the ceiling where the wire was sparking. I am surprise dhte house didnt burn down.
Home Before Scary wiring With Lights/no plumbing Bathroom Furnace