New motherboard resolved the issue. Took less than 20 minutes to swap boards; booted first time with no issues.
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I can show pictures if interested. THe only complaint is the usb (noted above) - here is a picture of that:
Hum. Oddly I don't think anand allows us to attach photos.
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I really do like this case; it is very easy to work with and has a nifty drive bay.
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After the fact I found this link which shows measure power usage of various processors (including g1610:
http://www.xbitlabs.com/articles/cpu/display/trinity-vs-ivy-bridge_12.html#sect0
(this is with ASUS P8Z77-V Delux so my actual usage (asrock b75) is likely a bit lower)
With an i3-3220 I could probably come pretty close to stressing out the psu with full load (cpu+gpu+dvd) but with the 1610 it would be a real struggle to exceed 80watt which I think is quite a comfortable margin (assuming this data is accurate) and in normal use I'm probably closer to 50-60 watts.
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Anyways after 8 hours of prime95 the system peaked at 42C and generally speaking everything felt quite cool (2500k/z68 (no overlock) under normal use is hot enough to bake an egg) - idle temp is around 29-30C (these are with the top off and cpu fan at 100% - which I think I will leave as it seems to make no noise).
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These might not be optimal temps but they seem quite reasonable to myself.
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In the worse case the g2020 (from that link) adds 7 watts so that probably would have been fine and it adds a bit more performance (clock + extra 1MB cache) but I would feel uncomfortable pushing an I3 at 100% load (stress test cpu+gpu).
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It remains to be seen with regards tot he longevity of this psu but as long as the power is clean (don't have an o-scope) I would think at this stress level it would do quite well; but I would not want to run prime95 on an I7 in this configuration

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I do highly recommend the case as not bad looking and extremely easy to work with - this thing is the same size as the antec 110 but has a very well designed drive cage and good length in wiring without being excessive (as mentioned the only wires of concern are teh usb header and hd audio - for the asrock mb - the hd audio was a non issue and I'm not sure there is a mb configuration that would create an issue; for the usb cable it has to be jammed between the cpu and inner ram slot (I could imagine a mb design in which it fails to reach the usb header) - on the z68/2500k system I have the ram generates a bit of heat and I would be unhappy. I was initially unhappy here but after running prime95 and memtest for a while - there seem to be very little heat generated from that area of the mb (also the b75 remains very cool - the z68 itself gets extremely hot (burn finger ) - given the tight case this also sets me at ease as I was worried that it would be similar to the z68 and have a lot of heat with little air flow.
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Not sure if the heat reduction in the bridge is due to ivy or less data flowing.
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As I mentioned I have photos but no place to host them. Not sure they would be that interesting.