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Need some major help

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OK so I about 3 or 4 months ago I bought some parts off Newegg and built my own computer, but recently I've been having problems with the power supply. The computer boots up and runs fine, but when I put it under stress I smell the power supply melting. You know, its the kind of plasticy smell. The first power supply I had came with the case it was 450w but just recently it died. So I went out to microcenter to replace it. They were having a sale for a 500w power supply for $13 after rebate. It was an MGE, I know its not top of the line but for $13 dollars you cant refuse. Well after a week it died again, so I took it back and got another one. The one I'm using has yet ro die but If for example I play a game, after 10 mins or so I can smell the plasticy smell again. On the ASUS monitor I the only thing worth mentioning is that the 12v rail goes to about 11.3 or 11.4 durring gaming. So I decided maybe it was a cooling problem cause the CPU was running at 50c idle and 65c under load. But there were times when it was higher. So I bought a new CPU fan and that lowered my temps to 37c idle and 47c uder load. But that didn't make a difference. Now I've run out of ideas could it be the CPU or maybe the motherboard is defective and is drawing too much power? I'm still under warranty so it wouldnt be a problem, but I would really like to know what is the problem so i dont have to send everything back. Oh and by the way im using 64-bit windows if that matters.

Breathe.........

Thank you for your time.

Here are my Specs:

MGE 500 Watt ATX 12V Black Power Supply

ASUS P5AD2-E Premium Socket T (LGA 775) Intel 925XE ATX Intel Motherboard

Intel Pentium 4 630 Prescott 800MHz FSB LGA 775 EM64T Processor Model BX80547PG3000F

GeIL DDR 2 Series 2GB (2 x 1GB) 240-Pin DDR2 SDRAM DDR2 533 (PC2 4300) Unbuffered Dual Channel Kit System Memory Model GX22GB4300DC

RADEON X800 XL PCIE 256MB 2PORT VGA DVI-I DVD EDITION

Maxtor / 300GB / 7200 / 16MB / SATA-150 / OEM / Hard Drive

NEC Black IDE/ATAPI DVD Burner Model ND-3540A

ARCTIC COOLING Freezer 7 Pro CPU Cooler

My current case and old power supply(RIP):

XION Black XION II XON-103 SECC Steel ATX Mid Tower Computer Case 450W Power Supply

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I agree with linux_0...This sounds like PS problem...its under powered....also for the fact you had 2 Generic PSs fail your Mainboard may have some issus because of the Generic PSs failing.

When buying a powersupply one needs to consider what would is cost me to replace most of the core componets that this PS is going to supply.
Reason; Generic/NoName PSs are so cheaply made that when they go they usually takes most of the componets connected with it to the trash

Enermax, Antec, and Aspire are to name a few Very Good/Reliable PSs

PS: you will spend more then $13 but you can pass it onto your kids
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DeadBow,

if this one starts smoking real bad, stop playing games with it and buy an Antec. Before you burn down your house or smoke a part on your rig.

Those cheap psu's are nothing but trash.

If you ever read a THG article on Psu's you'd know Antec always finishes up near the top if not at the top.
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