one question, The WinXP Pro COA sticker is on the case, is it legal for me to tranfer to another pc? B.T.W the COA says 1-2CPU does that mean it can be used on two pc's?
No, and no --
More than likely the COA is for an OEM version of Windows (check the label, it might say) -- an OEM version comes pre-installed on the computer, and is sold to the manufacturer at a greatly reduced price. They are NOT transferrable to another computer, unfortunately.
1-2 CPU means that it will be able to use a 1 or 2 CPU's in a computer. theorethically, if you install it on a system with 4 CPU's then windows will only be able to use the first 2. Now, to make things more complicated: Microsoft only counts CPU
sockets, not cores -- you can have a PC with 2 quad-core CPU's (8 cores total) and it can use them. but have a PC with three single-core CPU's and it will only be able to use two of them. If you have more than 2 physical CPUs (sockets) then you can only use them with the higher-end server versions of windows... But bottom line: the 1-2 CPU does NOT mean that you get to run it on another computer.
Now, as far as the hardware is concerned:
Since you say that the power supply itself is bad, it's quite likely that it gave a powersurge to the motherboard during it's deaththrows, shorting out the motherboard and/or the processor.
If you try to power up the machine with just the motherboard and CPU (no memory) and you don't hear any beeps and don't see any LED signals, then most likely it's a problem with either the CPU or the motherboard itself.
On the off chance that it's NOT fried by the powersupply, here's something to check for: Do you see any leaking or bulging capacitors on the motherboard?
leaking:

bulging:

In the early stages bad capacitors lead to an unstable machine that crashes often, in the later stages it can prevent things from booting up altogether. If you see either of those, then the motherboard is most likely a goner.
Finally, something else to double-check: make absolutely sure that all the case header cables on the motherboard are attached properly. (power, reset, speaker, etc. If those header cables are not attached properly, many motherboards won't even POST.