Glowing orange IC chip? That's not good! At this point you might be better off simply removing all of the electronics inside the servo, and hardwiring the servo's motor leads to a separate ESC, as you did for testing.
If you want to run two motors individually, you will need two separate ESCs, each running on it's own radio channel, or else one ESC designed to run two motors individually, on two separate channels. Dimension Engineering's Sabertooth line of ESCs would be great for this. Even if all you have is a simple 2 channel pistol grip style radio transmitter.
http://www.dimensionengineering.com