I think they meant outside on the ground. The launch may have set fire to some vegetation or something.
Quite possible. As fire doesn't happen for very long in space due to lack of oxygen, I would think that whatever it was either ended quickly, or it was on the ground. They said that about 7 minutes into the launch, and it was the last voice tX over the radio comms they had with the video uplink, so I'm hoping you're right and it was just fires on the ground. I do know that they were having problems, and that they aborted the mission temporarily and are scrambling around to find the cause for some tech problems
Did anyone else watch it live? You could see the last view they had of the camera pointed back, a small white nozzle venting stuff into space, I thought it was a thruster or something, but the attitude of the vehicle didn't change a bit, so now I'm wondering if it was a leak? They are saying on space.com that they had thruster problems which is why the abort happened for the hook up...interesting stuff, if it all went 100% all the time they wouldn't learn how to manage problems I guess. I hope they can sort this out easily.