Errmm.. in standalone more, there is no "copy ROMs" - it always uses the flashed ROMs. Is that working normally?
If so, did you double-check for possible bent pins in the expansion port of your C64?
About power supplies: If a PSU gone rogue damages the Chameleon, you can *of*course* not revive it with a proper PSU. I'm still hoping that this is a simple contact problem. Also, please don't use the "but it works!" line, as that's too far from any engineering background. The Elektroware PSUs are not built to any safety standard, and they use chassis that are not meant for distant power sinks. They are not suitable for a C64 or Amiga by definition. I highly recommend to geturn the unit for false advertising, and I will not provide warranty for my products if such a unit is the cause.
Jens