A 50VA transformer will take about 0.21 Amps when correctly loaded (VA / Input voltage)
So a fuse of about 1.5 x the input is suggested and should be Anti Surge (Usually marked T or TT - T stands for "träge" which is german for Lazy or slow) - so 315mA A/S or 400mA A/S
If your fuses are vaporized and cover insides with remains of the wire - This indicates a major short...
What type of transformer are you using - is it a toroidal - if so have you got a shorted turn (if you mount a toroidal transformer incorrectly you can add an extra winding which is shorted out - this is creates by mounting the transformer with a conductive clamp which is bolted down in the middle - if you are using a toroidal - try removing the clamp...)
It is possible that you have a faulty diode in your bridge - I have seen diodes that measure OK when tested with a meter, but when either loaded, or subjected to a higher voltage, break down and become shorts, or leak - the easiest way to prove is to replace ALL the diodes, as I have found if one is faulty, it usually subjects others in the bridge to stress, which may make them more likely fail, and for the cost of 4 diodes of 1N400X or 1N540X - I usually use 1N4007 or 1N5408...
The type and rating of the fuse you must use depends on your local regulations and laws, so it is difficult to help without knowing.
However, the regulations, no matter in which country, depend on physics - more precisely, they ask if the fuse will prevent the wires, switches and outlets from burning in case something fails and causes an overcurrent.
Despite your nice diagram, we can't tell what types (diameters/cross section) of wire are used in your installation, and where the wires are put. For example, different ratings apply depending on whether your wires are laid out in a stone wall or in a wooden construction, or in a wooden construction containing some thermal insulation making it harder for your wires to get rid of heat.
A typical installation in Europe, for example uses wires with a cross section of 1.5 mm2 and fuses with 16 A. If the cross section of the wires is smaller, the fuses have a lower rating, too. If the wires are put inside of thermal insulation material (e.g. in an outside wall or along the roof), you may have to use 13 A or even 10 A for the same 1.5 mm2 wire.
If you are not absolutely certain about your local regulations, please ask a professional electrician. If not done right, you put your house in danger of burning down.
Also, if you have sparks in your fuse holders, I think it's time to replace the entire fuse-and-holder combination. Sparks / arcing may cause very much heat, starting a fire in your fuse compartment!
Best Answer
Probably an elctrolytic cap inside the PSU has blown open circuit, can you open it up to check? If there is not any noticable ripple on your output I would not be too concerned.