Hi GAV.
I haven't used an A500 in YEARS, but this problem came up when the 68000 chip became unseated often due to heat expansion. Did you press firmly down on it?
Oh, and be sure to scrape all that batter off. Deep fried computers tend to malfunction ya know. :-P
Oh, and yes, that green crud is corrosion. Get a light, magnifying glass, rubbing alcohol, q-tips, and and x-acto knife or if you prefer, that tool dentists use to scrape plaque off your teeth.
Rub the alcohol liberally, let it set for a bit, then scrape very carefully, using the q-tip to clean up the corrosion. Be careful that if you're using a sharp tool, only scrape the metal legs. And of course, unplug the computer.