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Oh me gawd. I have never seen that done before (the foam, not ground. That's not good neither). Yep, like many said above, its time to install a new panel. I am almost temped to ask you to loosen up the wires and use a plastic scraper, try and scrap out some of the foam to save yourself some money. Sometimes, they are a btich to get out. Take the feed wires off the lugs, wire nut them, tape and scrap away. It may not be worth the saving for you due to the danger. Plus, you look like siht with curly hair.
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