yeah, i'm fairly certain his cdp plugged into the preamp and the x-10 was inbetween the pre and amp. There is a dire warning in the X-10 owners manual (if memory serves me) about turning on other gear before turning the X-10 on - or is it the other way? Anyways, i've read of a few folks ruining components with that intrepid little box. You are the 1st I've heard of that damaged speakers....so sorry for your loss.
After I sold my X-10 i bought an AES tubed preamp. When that didn't work due to compatibility issues I bought a TVC preamp. Now I have the tube sound i wanted without any tube gear.
i'll never forget the bass with the x-10 in place...but peace of mind is much more important to me.