Smoking wires

Ok, I was doing the paperclip test on the psu and it turned on fine, then I tried plugging one case fan in and it turned on fine. Then, I tried pluggin in a red/black wire that goes to the front panel connector, the fan led on off button. When I started it up, I saw smoke coming out of the system. I immediately unplugged the system, but now the button is stuck down and the wires going to it are melted ( its a 2 pin connector). When I plug my 24 pin into the motherboard, a green light comes on, and the psu is enough to power two fans. I dont know if the motherboard, or any other parts for that matter, got fried from the wire melting.

How can I test the power button front panel connector? I am beginning to think the front panel is busted, and if it wasn't, it probably is now. I also tried the paper clip trick to turn on a dvd burner, but that didn't work, if that information is useful.
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More about smoking wires
  1. Nothing from your front panel should have directly connected to the PSU. Can you provide a picture of what you plugged in where?
  2. I got the computer working, it looks like I just shorted out the fan led button on the case, computer is up and running with windows and drivers so I'm hoping all is well.
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