As the aircraft was climbing through 1000 feet the pilot noticed a reduction in manifold pressure and fuel flow readings for the right engine. He advanced the right throttle and found that the engine instruments indicated that the engine was performing as if it was normally aspirated. A short time later he saw flames coming from the right engine and the fire warning light and alarm bell activated. The fuel to the engine was shut off but the pilot was unable to feather the propeller. The fire did not go out. However, the pilot was able to successfully land the aircraft at Rockhampton where the fire was extinguished. An inspection of the aircraft revealed that the number 4 cylinder was cracked and holed around the seat of the exhaust valve. It is considered that the cylinder cracking and the subsequent burn away of material resulted from extreme operating temperatures. The torching of the combustion products through the hole resulted in the induction manifold being consumed by fire. It was also determined that the propeller could not be feathered because the propeller governor control cable had become inoperative after its mount point on the induction manifold had been destroyed by fire.