So it no longer showed picture even without the chip? Is it possible that you short out an AV cable? Because that is all I could think of right now.
See, even if you destroyed your DVD drive, that would NOT give you 3 red lights. How can you test this? Start the machine up without the DVD drive in, and you will see that the only error light you get is the middle power light will flash constantly (indicating a DVD drive problem, but in this case no DVD drive)
Now, if for some odd reason it starts up fine without the DVD drive, well then you've solved at least that problem.
But you are sure that nothing may have fallen on the motherboard, came out of place, etc.? Check everything, because there was a time once when I assembled everything and got 3 red lights, but just pressed my case in and then it came on like normal (could case allignment cause 3 red lights? i doubt it, b/c u can start it without the case at all, but it seemed like it did for me that one time)