except for the video-playback in the TV-tuner, DVD and recorded programs, which all suffered from a similar video corruption. This has basically made the major functions of the Multimedia Center unusable.
I take it you have not been to the Zalman web board, they advise you that the VGA heatsink interferes with the Radeon 8500DV AIW.
QUOTE FROM ZALMAN
"Thank you for the interest in ZALMAN's product.
Neither of our VGA chip cooling products are suitable for ATI All In Wonder series because there are interferences with TV-Tuner pack, heatsink's width and several electronic components, especially capacitors. ZM80A-HP is fully compatible with All In Wonder Radeon 9700 Pro exceptionally.
Fundamentally, ZM80(A)-HP which is suitable to ATI Radeon 8500 except "All In Wonder versions" can be installed on a VGA card having 2 holes for cooler mounting on its PCB.
I was also interested in the product before so I read up on it quite a while back. Just remove the whiney 40mm fan and place a L1a at 5v parrallel to it or on top with a Zalman bracket and it should be ok. I have one mounted parallel to it and it has been fine.
If you have removed the small HS make sure you put it back on.
I doubt you have cooked it, I have ran the card fanless for a number of weeks, although it does get pretty hot.