Ok, so I ordered the recommended PSU from Jameco just to be sure that the problem wasn't due to an unregulated power supply, and I still had the same problem with TI burning up and smoking when I switched everything on.
I replaced the trimpot for the backlight thinking that might be the problem and the light was bright again, so I was hoping that was the problem and everything would work ok. I went ahead and started loading the software, which appeared to go smoothly, although I didn't see a MIOS boot screen, simply a row of rectangles. I thought maybe the trimpot setting had to be changed, and when I turned up the backlight trimpot past a certain point there was a pop and some white smoke again. Probably from T1.
I replaced T1 again and got some funny behavior, initially the rectangles were quite bright, but they flickered between bright and very dim a few times and then stayed dim.
When I pulled the sammichSID apart again, I noticeD that there was a fairly large blob of solder on the top left connector pin (B-)to the LCD which looked like it was in contact with the nut holding the nearby screw in place, creating a solder bridge of sorts. I cleaned the excess solder up and tried powering the unit up again but everything was dim again.
I switch T1 again thinking another one was shot, even though it hadn't started smoking or felt warm, but the new one didn't change things either. When I test the new T1 with the meter I get 1 way signals between the base-collector and base emitter only so I'm hoping its actually ok. I'm getting nervous de-soldering those as its getting hard on the board.
I guess I'm wondering if its possible that the LCD has been damaged through all of this as well. The transistor feeding the backlight, as well and the negative backlight connection appear to be the components involved in this.
At the moment my LCD has dim triangles, no backlight, and wont show characters... although It appears that the software loaded correctly. I get the cluster of LCD flashes when I boot up, and a couple of LDs when I press switch 6 right now.
Any advice insight would be helpful. I'm running out of ideas.
Thanks.