Hi Sheefa!
I've got my airhorn working, but I just want to wire it up at the battery in a neater way. I got mine from Halfrauds.
I've used the existing horn wiring to act as the "signal" to the relay to activate it. The stock electrical horns take much less current than an airhorn, so it's unwise to use the existing wire to try and power the airhorn. What I've done is got an inline fuse run a high-current wire from the battery via an inline fuse (30amp, I think, fitted as close to the battery as possible) to one of the inputs of the relay. Like you, I've grounded my horn using the chassis bolt that the old horn used.
My guess is, I don't think you've got a short, I think you're just drawing too much current for the fuse to cope with. The horn's air compressor is a thirsty beast!
Oh yeah, make the grounding wire that goes to the -ve battery or chassis point as high-current as possible. 17amp doesn't sound heavy duty enough for this. I would look for 30amp. Remember, the high current from the compressor AND the signal current from the horn switch will both be flowing through this bit of wire. If you want photos or more advice about how I've done it, just give me a shout.