old resistor packs for fans were open wire that sat in the fan's air
stream for cooling. they were generally very reliable if their alloy
wasn't too susceptible to salt.
that unit looks like it still sits in the air stream with that honking
great heat sink and i estimate it's trying to dissipate >100W. that can
only mean it's a linear controller because a modern pwm device can
control high motor currents with very little heat dissipation <10W.
bottom line, a linear controller is always going to get hot and end up
frying itself over time. the only thing you can do is either replace it
with another unit that will ultimately meet the same fate, or undertake
a significant modification.
for the latter, you can try putting an even bigger heat sink on it - but
i doubt there's a lot extra room available. you can also "pwm" it. i
built a similar unit to deal with a linear controller over-heat issue on
my 89 civic.
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http://www.flickr.com/photos/38636024@N00/5068043855>
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http://arduino.cc/en/Tutorial/PWM>
depending on how much time you want to spend on a project like that, pwm
can control superbly and offers benefits like motor speed not being so
susceptible to supply voltage [engine idle voltage drop] etc.
the down side of pwm is that it can generate electrical noise. [poor
stereo installations can be particularly susceptible.] the ideal
solution is to implement pwm with "soft switching", but that's getting
quite advanced.