This is how i set it up. At the ESP I tried both locations. Are the PCIe's location specific? The CPU goes in well.
So over all I can run it when the Blade is not connected nor the fan. But I hooked it up to the other side and it ran ok.
I disconnected the fan so only the fan on the PSU moves. Then I plug in the blade and the PSU just powers down. I got the stock PSU running fine and hashing away on one blade. I'm just thinking of getting a 1200w single rail to make this problem go away. If anyone else has an idea I would love to hear it. I feel myself loosing money everyday.. Damn...
For the ESP locations you need to run the CPU 8-pin connector from each power supply to those - both EPS connectors have to be populated. So, what you'll have is *EACH* PSU supplying the 24-pin, the 8-pin CPU (also called EPS), and 2 PCIe connectors. In my second pic, you can see that I do have the EPS hooked up. You absolutely need this or it won't power up. Most likely that is the root of your problems, and you should be up and running in no time.
Good luck!