That shield ground doesn't look right at all in that PSU...
It's 'Shield Ground' not 'Shield +5v'....
The last few power supplies I've had that were converted, and a couple I just made myself haven't got it connected at all, doesn't cause problems on A500s at least.
On the subject of hot swapping port 1, it's definitely not just a bad luck thing. I've fried port 1 on a friend's Amiga (which I bought right after) by 'twiddling' the joystick as he plugged it in. It fried the logic chip there. I've also had a number of Amigas with dead CIAs hitting port 1, some I've caused myself and others I've recently bought that way.
