Ok, I've shortened the GND wire and took it to the edge of the motherboard, it's now about 1/2 inch long. Updated pics of the install can be seen here,
http://groups.msn.com/Colspages/colspics.msnw?Page=Last
I've checked all soldering for shorts, bridges etc both visually with a 10x magnifiying glass and also with a multimeter. I've also sent an email to the Matrix team.
The console works perfectly and plays originals, it's as if the chip is not there. One suggestion I've had is that some Matrix chips have left the factory with no bios installed and the chip needs to be flashed from memory card manager, I'll have to wait and see what the Matrix team have to say.
I'm stumped
