Is my PSU fine?

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PSU: Xclio "Goodpower" 500W
LED Indicator Light Key: Orange = Stand by / Green = Power ON

Yesterday, my computer emitted a semi-loud *crack* in the area of the main power connector when I tried to restart it when the motherboard was directly connected to the computer case (I was stupid and didn't install the standoffs), then died (no smoke came out). When I try to reboot, every fan in the computer would begin to spin, then immediately die out a second later (fans don't halt to a stop at once, they just spin until their momentum is spent). The LED indicator lights on the back of the PSU would light orange on the initial plug in of the power cord, then would flash green then go back to orange in relation to the fans powering up when I press the power button of the computer. Also, after I press the power button the first time, the power button will not work again until I remove the power cord, then reconnect it to the PSU after the LED goes out. Also, there is no burning smell in the PSU.

Is my PSU in working condition?

Extra questions (somewhat off topic):
1) Can a fried motherboard fry its connected components?
2) If the fan of an 8600GT graphics card is working, does it mean that the graphics card is fine?
3) Is it an ABSOLUTE MUST to remove/reapply thermal paste every time you break the seal?
 
i had a problem like this. I thought it was my power supply, i didnt see any smoke, had no burn marks, but same problem, turn on for a split second. i realized it was my motherboard tho... so, one way to check, take it to ur local comp/fixer-upper store and have em test the mobo and the psu.
 
Thanks for the replies guys.
Ah, here's an update to my situation.
I plugged in the P4 and the 20 (not 24) connector into an old computer, and boot-up was a success. Could there still be something wrong with the PSU, such as the "+4" part of the main power connector or another cable?
 
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