but as you can see in the circuit its from the Mosfet to ground, should i change this?
yes it should be across the inductive load.
Did the MOS burn because it got to hot?
Yes.
its rated to 10A at 25degrees.
But as it gets hotter that current gets smaller, it is called de rating. If you want to keep the 10A then you have to keep the case at 25C, which is not possible without an infinite heat sink.