pix of the power board. the black wire is the ground coming off of the panel switch. it IS NOT grounded to the chassis.it is only grounded to the cliff jack.
I think you have properly floated the relay power supply ground.
But, just to be sure... Before you connect that black wire to the "grnd" turret on the PS board, check for resistance one more time. Connect one meter probe to the dangling black wire. Connect the other meter probe to chassis. You should have infinite ohms reading. Flip your front panel switch back and forth. Meter should read infinite ohms in both positions. Now connect your footswitch or just short between the lugs on the cliff jack. Meter should read infinite ohms for all cases.
Meter should never read zero or low ohms for any of the conditions in this paragraph.
One more quick resistance check... Leave one meter probe connected to the dangling black wire at the PS board. Connect the other meter probe to the white wire at the relay board. You should read infinity ohms or zero ohms, depending on the position of the front panel switch. Flip the switch and the meter reading should change.
If both these checks are good you are ready to connect the dangling black wire to the "grnd" turret on the PS board. Now power up, hopefully with no smoke. You should be able to hear the relay click when you flip the front panel switch. If you can't hear it, put the tip of a screwdriver blade on the plastic body of the relay and hold the screwdriver handle firmly against your ear. Should be able to hear it now when you flip the switch.