Did everyone miss the obvious? The PSU was overloaded (it's only 330 Watts), it overheated and then BZZT and F#$%K.
I'd bet than you raised the voltage on everything: the CPU, RAM and even the AGP slot. When you burned a CD, the most power hungry function, the PSU couldn't take it anymore.
That's why I'm going for a 430 Watt PSU: I'm not dealing with being short of power, and I will not overheat a PSU.
Once in a while, we get lucky and get a 330W PSU that can take a little more. Not always though...
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