A B757-200 IN CLB AT 17500 FT DECLARED AN EMER AND DIVERTED DUE TO #2 ENG FAILURE. ON GND CHK FOUND MELTED METAL IN EXHAUST DUCT.

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THIS WAS A SCHEDULED; PAX-REVENUE COMMERCIAL FLT FROM FLL-JFK. WE WERE CARRYING 16 PAX; CREW OF 6; FUEL WAS 26900 LBS AND GROSS WT OF 163900 LBS. ALL PREFLT START AND TAXI OUT PORTIONS OF THE FLT WERE ROUTINE. THE FO WAS FLYING. THE TKOF WAS NORMAL WITH THE EXCEPTION THAT THE R ENG WAS SLIGHTLY SLOWER TO SPOOL UP ON THE EPR COMMAND SECTOR THAN THE L; BUT NOT ALARMINGLY SO. WE WERE INSTRUCTED TO INTERCEPT THE 'ZAPPA TRANSITION; FT LAUDERDALE 9 DEP AND CONTACT MIAMI DEP. I HAD JUST STARTED ASKING MIAMI ABOUT THE RIDES IN THE CLBOUT (THE SEATBELT SIGN WAS 'ON' FOR LIGHT CHOP); WHEN THERE WAS A LOUD BANG AND YAW; FOLLOWED BY A LOSS OF PWR INDICATED ON ALL OF THE #2 ENG GAUGES (NO EGT EXCEEDENCE WAS VISUALLY NOTICED). I IMMEDIATELY DECLARED AN EMER AND ASKED FOR AN IMMEDIATE TURN BACK TO FLL. THE FO LEVELED OFF AT 17500 FT; AND I DUG OUT THE QRH TO READ THE 'ENG FAILURE OR SHUTDOWN' CHKLIST. THE FO'S EFIS DISPLAY BLANKED OUT A COUPLE OF TIMES (DUE TO LOSS OF GENERATOR PWR); SO I TOLD HIM I WOULD FLY THE ACFT; AND HE WOULD READ AND PERFORM THE NON-NORMAL CHKLIST; AND WE MADE A POSITIVE XFER OF THE ACFT WITH THE UNDERSTANDING I WOULD FLY IT THE REST OF THE WAY. WE THEN ACCOMPLISHED THE DSCNT AND APCH CHKLISTS; REQUESTING THE FIRE EQUIP AND A STRAIGHT-IN TO RWY 27R. A 360 DEG TURN WAS MADE TO LOSE ALT; AND THE ILS FLOWN NORMALLY; WITH THE EXCEPTION THAT I PADDED THE SPD 10-12 KTS DUE TO GUSTY CONDITIONS (WINDS WERE 350 DEGS AT 18+ KTS); '3' WAS SET ON THE AUTOBRAKES. LNDG AND TAXI-IN WERE NORMAL. I WENT TO THE BACK TO THANK THE PAX FOR THEIR UNDERSTANDING AND COOPERATION. A POSTFLT EXAMINATION OF THE ENG SHOWED ALL BLADES INTACT; BUT 'FROZEN;' WITH BITS OF MELTED METAL IN THE TAILPIPE SECTION. ONE OF THE FLT ATTENDANTS SAW A LARGE BALL OF FLAME EXIT THE ENG AT FAILURE; BUT NO FIRE WAS OBSERVED OR INDICATED FROM THE FLT DECK.