was testing some code from example http://code.tinyclr.com/project/414/easydriver-stepper-controler/ and the LED on the went out and USB device disappeared. I unplugged the power to my driver and pulled all the wires from the Fez Panda II let it sit and still will not powering on. Tried a different computer still no go. any suggestions. 
Did you have a motor connected directly to FEZ?
No it was connected through a Pololu/StepStick Stepper Motor Driver. It had tested fine 5 or 6 times. I was trying to make some small changes to the number of steps when it all stopped working.
Disconnect everything and only connect USB. Check for overheat. Also, put the board in loader mode (LDR button) and see if windows detects something on USB.
Still no light comes up as an unknown device and I cant force the drivers on it. On a side note I added a pic the area I circled is getting to about 130 Deg
You can send it back for us to check if you like but it is probably dead, by maybe. It is important you know how it died as code will never cause damage to the board.
So if it is dead am I looking at just having to buy a new one?
If you are good with soldering you can fix it. If it is the processor then you can get this http://www.ghielectronics.com/catalog/product/117
Really should protect the supply pins to the Panda with filters and a TVS when working with steppers. The steppers can generate some high voltages on the supplies when the motors are freewheeling. A stepper will act as an unregulated generator in that case.
should that crystal can be swollen at the top? I know mine doesnt. whether that would be enough to stop the processor on its own is a different question, but it might be something you could unsolder if you were wanting to try surgery.
John, where are you located?
That RTC crystal looks bad indeed. The good thing is they are really cheap and through hole -so easier to replace. As Brett said that may be not the only problem though.
I am in North Dallas.
So I donāt have a problem soldering but replacing the main chip looks to be allot more detailed that I have ever done.
The crystal looks simple enough to replace but being an electronics noob I would not know what to buy.
I am willing to toss a few bucks at it before I just replace it.
It is generic āclockā crystal.
http://mouser.com/Search/ProductDetail.aspx?qs=sGAEpiMZZMtg8rPr%252bGIKJmkxQqIPZPL8Se0a4BCRnM4%3D
http://search.digikey.com/us/en/products/AB38T-32.768KHZ/535-9034-ND/675229
Thanks.
I think i can to that easly. if not I will probaly just get a new board :ā(
Iād put in an order for a new panda at the same time 
You know, once you have one and have played around a bit, you will want a second ādevelopmentā board when the first goes into āproductionā somewhere around the house. Then you will find another project so youāll want another, and the circle of life continues
Sounds good to me but the boss(wife) might not like the idea.