Reading about your symptoms...I seriously doubt this problem remotely has anything to do with your Power supply. I had a G4/400 upgraded to a 1GHz chip with the RAM slots completely filled with RAM @ 867MHz, PLUS two video cards (AGP and PCI) and an ethernet card....and the machine handled it just fine.
I also have experience WITH a Power supply problem (major). My first PowerMac was a 9500/120 which I purchased in 1995. In 1996, I was using my machine, when all of a sudden, I heard a loud "pop!" and the machine just died, the screen went black...everything just turned off. After considering everything that could be possibly wrong, I had faith that this was not a blown logic board. I located a power supply for the 9500 (it was about a $300 part back then) and installed it myself (I took the 9500 apart to the motherboard and all the pieces, completely disassembled...and I was 13 years old
Well, good news - it fixed it, and that 9500 faithfully served me for four more years until I upgraded to a B/W G3 tower.
Your power supply will usually not cause crashes, if you stress it too much, it will just burn out and die. I don't think that's happened.
Hope this helped...good luck with further figuring things out. Sounds like either bad RAM, firmware problem, processor problem, cache problem, or something of the sorts. Sometimes the issue is a bus compatibility problem, using the wrong speed of RAM, or using a processor which is not clocked properly to work well with your system bus. This happened on that 9500 of mine when I tried to put a 200MHz 604 card in there, it started freezing up and crashing, left and right. But oddly, I got a NewerTech G3/300 and it worked alot better. When I sold that machine it was running OS 9.1. Oddly, I have had virtually no freezes on any of my machines since Tiger. Just app crashes. (unexpected quits)
Good luck
-Ward