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I'll probably continue making these threads whenever I find new naughty power supplies so that's why I've named it #1.

This one came in a customers computer that I was doing some other work in. I did my regular cleaning and in doing so took out the motherboard and saw this:

http://dl.dropbox.com/u/464376/headshot/power_supply/DSC05326.JPG

It looked about the same on the ATX connector on the motherboard. I found out it was a problem caused by small gauge wires on power supplies and sure enough this power supply had about half the gauge wire that most all the other ones I have laying around did. This power supply did power the customers computer and had no ill signs but this can show you that danger can sneak up on you. If they heated to the point of melting the wire insulation or ATX connector, there could have been a short or worse even a fire which in either case, you will have to buy new parts or perhaps a new computer. This is what a cheap power supply is, those $20-$30 ones you see online or in stores, this is how they get those costs down. Even though the power supply worked, seeing what it did, I won't allow it to power another computer again so I recycle it:

WARNING: Unless you know what you are doing DO NOT attempt to do the following! Discharge the PSU and let it sit several days to reduce electrical shock!

http://dl.dropbox.com/u/464376/headshot/power_supply/DSC05327.JPG

Now I could just take the whole thing in and recycle it as-is but I have to pay for that. Taking it apart does several things:
I get to keep the 80mm fan (I have 4 recycled PSU fans in my server)
I get to keep the screws (there's several 'standard' screws inside these)
I get money from metal recycling (not much but at least I don't have to pay to recycle it)
I get the wires that I can use for other projects (yea, small gauge but I'm talking about for custom fan wiring and whatnot)
Finally, less weight I have to pay for to recycle.

Now it's totally up to the consumer to choose what product they want but my goal in all of this is to really urge people to avoid the cheap PSU's or ones with shiny lights and a nice painted case and wire wrap. Spend your money on quality and you won't have to worry about damage to your components or fire hazard or even having to buy a new one in a year or two. Don't get this shitty brand:

http://dl.dropbox.com/u/464376/headshot/power_supply/DSC05328.JPG

I'll just stick to corsair PSUs. 8)