1) Most likely. Not really sure what you connected wrong, but that certainly sounds like a toast power supply or motherboard.
2) I certainly wouldn't go looking to inhale it, but move the unit to somewhere well ventilated for a while and you should be fine.
Yeah, (2) was a bit panicky, I admit.
Since I heard a pop from the speakers, I'm guessing it was more than just a 'board, sadly.
I've seen the subject brought up in many a thread, but I'll add it again. Since I am now spec'ing solutions again ... are Links still a primary-market item? Or in other words, where does one buy one anymore?