STOOOOOPPPPPPPP!!!!!!!
Yes, the power supply is fully closed, and should remain as such unless you know what you're doing. Opening up a power supply is a great way to give yourself a really nasty shock, and while mucking around in there, if you cause a short, you've got a real chance at starting an electrical fire once you plug the machine back into an outlet.
So, unless you have a ton of experience, I wouldn't go messing about with the PSU.
I still think, given the symptoms you described, it might be a failing logic board or bad RAM. Leaking or burst caps are one way for an LB to fail, but not the only way. You might have a broken solder, for instance, that could be causing these issues. Or, perhaps the machine overheated (heat dissipation was not the best on these models).
However, even if the hardware test didn't indicate bad RAM, that doesn't mean your RAM is good. I was having all kinds of issues with my machine around the time that Apple released 10.5.8. It was crashing, it would boot to the grey screen and then stop booting, and when I tried to re-install Leopard, the installation would fail. When I took it to the Genius Bar, the Genius played with it for a bit, and then diagnosed it with a bad logic board. I took the machine home to pull the machine apart and try to salvage what was on the HDD.
I posted the problems on a message board, and someone said to try to swap out the RAM and see what happened. I had purchased a 2GB kid from Crucial a while back, which had been in the machine for a while. Desperate, at this point, I pulled the Crucial RAM and re-installed the original 1 GB from Apple. Then, I wiped the drive, and installed Tiger, fully updating it, and then upgraded to Leopard. Everything worked perfectly. I send the RAM back to Crucial, who confirmed that it had went back, and sent me a new 2 GB kit within a few days.
My point of this long jeremiad? Without seeing your machine, my best advice would be to take a good look at the hardware again, and if possible, swap out the RAM, and also if possible, boot from an external HDD. Also, if you boot from the installation disks, what happens? Does the computer freeze, or can it run off the disks?