Colleague brought a friend's PC into work. He had been looking at the RAM, pulled and replaced a couple of power leads, switched back on and smoke stated pouring out of the back.
We took it apart and found that all the insulation on the leads going to the floppy disk had melted and burned off, and had also melted the power leads and a ribbon cable. The PSU was a cheap unbranded one.
Tested the computer with another PSU - all OK, so I ordered an FSP from Scan. (350W - about £23.00)
Fitted it - all started up, then realised I hadn't plugged in the floppy drive power lead. Did so, powered up - nothing.
Checked again, and realised that I had misplaced the floppy connector by one pin - which I think my colleague had also done, so shorting one of the power rails to ground. (Difficult to spot because of the location of the connector). Once that was corrected the PC started up normally.
The difference? - the FSP PSU just shut itself down safely. The cheap and nasty just delivered the maximum current it could with the inevitable result.
Lessons (re) learned
1. check and double check connections - most are very difficult to mis-connect - the floppy isn't
2. (and probably the most important) Use a quality branded PSU that will help prevent errors turning into something much worse. The PSU that was replaced was really nasty lightweight one.
And as a bonus the FSP is also quieter!