I saw both. The story about the one that burned out at the end of the runway is essentially correct, except the date was 1966 - I flew over Scampton in a JP during my BFTS training and saw the blaze. Also I query that Dick fenn was the co-pilot, I thought he joined the V Force after that.
I was duty pilot in the tower when the aircraft (Captain - Val Ventham) suffered an engine fire on rotate. Flying off the ridge without doubt saved their lives, because they completely disappeared from view. The controller hit the crash button and it seemed an agonising amount of time before the aircraft came into view again trailing black smoke. The weather was fine, so he flew a visual circuit and landed without further incident.
The peculiarity about the Vulcan engines was that a catastophic disintegration often caused the airflow through the engine to reverse, spitting debris forward into the intake, where it was promptly sucked into the adjacent good engine, causing that to fail as well. Hence we always practiced for a double engine failure.