AN AERO COMMANDER 690 IN CRUISE AT 16000 FT DECLARED AN EMER AND DIVERTED DUE TO R ENG LOW PWR INDICATION AND SMOKE AND FLAME FROM R SIDE WINDOW HEAT BUS.

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ON SEP/XA/01 AT APPROX XB00; I WAS FLYING AT 16000 FT NEAR LEXINGTON; KY; ON AN IFR FLT PLAN FROM AVL-SBN. AT ABOUT XA45 I WAS NOTICING A HORSEPWR INDICATOR FLUCTUATION; WITHOUT ANY ENG ITT; NOR FUEL FLOW DISTURBANCES. I THOUGHT THIS APPEARED TO BE ELECTRICAL IN ERROR. I MENTIONED TO THE OTHER MEN ON BOARD THAT TAKE NOTICE OF THIS FLUCTUATING INDICATOR; AND IF THE ENG ACTUALLY HESITATES; OR FOLLOWS THIS HORSEPWR INDICATOR; I WOULD; AS A PRECAUTION; SHUT THE ENG TO FEATHER. A FEW SECONDS LATER; I ASKED MY COPLT IF HE SMELLED SMOKE. HE SAID NO. ABOUT 30 SECONDS LATER; THE HORSEPWR INDICATOR MADE A 100 HORSEPWR DROP AND THE ENG FUEL FLOW AND ITT FOLLOWED THIS TIME; SO I FEATHERED THE ENG. IN THE SHUTDOWN PROC; WE NOTICED SMOKE AND A 2 INCH FLAME NEAR THE WINDSHIELD HEATER BLOCK FOR THE R SIDE. I IMMEDIATELY SHUT OFF THE WINDSHIELD HEAT BUTTON; PULLED THE CIRCUIT BREAKER. THE SMOKE AND FLAME WENT OUT. IN THIS TIME FRAME; I HAD ALERTED ATC THAT I WAS DECLARING AN EMER; DUE TO A PRECAUTIONARY R ENG FEATHER AND THAT WE HAD SMOKE AND FIRE IN THE COCKPIT AND REQUESTED A VECTOR TO THE NEAREST ARPT. ATC GAVE ME AN IMMEDIATE HDG AND I WENT INTO AN EMER DSCNT FOR THIS ARPT; DESIRING TO GET THE ACFT ON THE GND AS QUICKLY AS POSSIBLE TO DISEMBARK THE PAX. WITHIN 1 MIN OF THIS CHAOS; THE SMOKE AND FLAME WENT OUT AND I CONTACTED ATC WITH THE RESULTS THAT 'THE R ENG IS FEATHERED; THE SMOKE AND FLAME IS OUT AND I DESIRE A VECTOR TO A LARGE ARPT WITH FACILITIES.' ATC VECTORED US TO LEX. I LANDED WITHOUT FURTHER EVENTS. SEP/XF/01; I RECEIVED THE OIL ANALYSIS AS NORMAL. THE SVC CTR MECH FOUND THAT THE R ENG TRANSDUCER (1974 VINTAGE) HAD GIVEN THE ERRONEOUS INFO TO THE HORSEPWR INDICATOR. THIS WAS THE REASON FOR THE PRECAUTIONARY SHUTDOWN. HE ALSO FOUND THAT THE R WINDSHIELD HEAT STRIP HAD SHORTED AT THE EDGE OF THE GLASS AND ELECTRICAL BLOCK (ALSO 1974 VINTAGE). THIS WAS THE REASON FOR THE SMOKE AND FLAME.