You're pretty close. The first officer (friend and neighbor) took his jacket from the jumpseat and smothered the fire while the captain turned off the window heat. Believe it or not there actually was a fire.
I was in CHO Thursday night and my roommate ferried the aircraft back to ROA later that night. He said that there was still smoke residue and burn marks on the window trim. The FAA even came out to see the airplane and kept it grounded until midnight.
This has happened before. Think the last one diverted to AVP about a year ago.
The Dash-8 fleet is aging. We have Dash 8s with over 80,000 cycles flying around. Some with 100,000 cycles right around the corner. We have an engine failure rate that would blow your mind. Tempe always has more important issues on their minds. They're just rolling the dice.
The only thing that has been saving US Airways' and the Express' reputation is the level of experience in the left seat at Piedmont. Majority of the Captains at Piedmont are lifers and have been flying the Dash-8 since 1985, while the junior Captains have been in the Dash for at least 6 years.