Brand new build, problems with POST

So I've been building rigs since I was in high school. This was my latest build and the only one I have had trouble with. I am very careful and professional in my work space and making sure I ground/clean all parts etc...Anyways...

Here is my build:

ASUS P8z67-v Mobo
Intel i5 2500k
Corsair 8 GB 1333 Mhz DDR3
2 X EVGA 550 Ti in SLI

So I'm building my rig the other night. I install the mobo on the case without a hitch, CPU is seated properly, heatsink was...tough to put on. Seemed like it wasn't making great contact with the CPU. I removed it, removed old grease and added some more grease, and put it back on saying to myself "maybe its just me." Now, my PSU still needs to be upgraded since it is only 700W, so I only installed one GPU. I installed my RAM, plugged in the CPU fan, case fans, power switch cables, and usb cables to the mobo, and plugged it all in.

As I was plugging in my PSU, a slight spark came from the outlet and I thought to myself **** because I know what had happened. The switch on my PSU was in the on position. I think to myself it may have not harmed anything. At first, the rig wouldn't power up. I unplugged checked, and tried again. This time, the case switches on and all fans are I thought. I figure I'de let it run through POST but before long, I smelt burning. I immediately unplug everything and notice one thing, the CPU fan was not turning.

So now I know something just fried. And it's either the mobo or the CPU. I'm guessing the CPU since the smell seemed to originate from the cpu socket and heatsink. I took everything out, put it back in, reset RAM memory, reset CMOS, and reseated the CPU. When I power back on, same thing. All fans spin but the CPU fan. Just to be sure the CPU fan isn't busted, I plugged it into a channel fan on the mobo and it runs fine. The CPU simply will not POST and my mobo is lighting up the CPU_LED. I know its not a PSU problem either as the same thing occurs when I plug in a different PSU. Later that night, I wanted to hit myself. I had completely forgotten to plug in the 8-pin power supply to the CPU...I fear I may have fried the CPU and pretty much just took a lighter to a couple hundred dollar bills. My question is, how do I tell if it is the mobo or CPU that is fried? Could the heatsink not having made complete contact with the CPU cause it to fry within 20 seconds? Could the fact that the 8-pin connector was left unplugged on the mobo cause the CPU to fry? Am I screwed until my next paycheck? Is OJ really innocent?
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