OK, your answers are more or less as I expected.
The PE has a somewhat underpowered video subsystem and in some cases - like yours - updating and adding some apps that stress the video system cause it to overheat. This overheating may, or may not, be fatal - the only way of testing this is to use the p-update.golden.zip renamed to just update.zip and follow the procedure to back-level to 1.6.
If you find going back works then you can try updating again but without rooting or adding exotic apps until you have run the system for some tome to check it is stable.
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