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Originally Posted by Blaster86
1. Could this have damaged any other hardware?
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Yes, but most of the time the rest of the computer is not damaged.
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2. Why were the LEDs inside the computer still on if the powersupply was dead?
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The power supply has different voltages/sections. One of the main sections could have failed, while the low(er) current lines are still supplying power.
Possibly the fan failed or was turning slowly and the unit cooked itself, or the unit was clogged with dust. OCZ has some good units and offer rebates. Newegg.ca has good prices, or locally Memory Express is decent.
edit * Van has no Memory Express, but there are a million computer parts resellers there.