The new chip should pop right in. It'll end up being underclocked, not a bad thing. It's an LC model, though, so there probably won't be an FPU or MMU. An 040 can be fitted if the CPU voltage is changed to 5V from 3.3V. If the 2060 is anything like the MK3/PPC, there should be a solder pad jumper to do this.
I thought 060 chips were keyed to only physically fit one way, so if the current chip has been forced in, there could be physical as well as electrical damage.
The board almost certainly won't work as just a SCSI/RAM board if the CPU is fried. The machine will probably just refuse to boot.
And you're dumping a PPC board in favor of a PlayStation? I think you'll end up being on the losing side of that deal. PS3s will be available for years to come with prices continually falling. Blizzard PPCs won't.
