"No chance of frying thIs Digital Audio 8500 Power Mac ??????"
I isn't a "digital audio" Mac. The first model with that feature had a PowerPC G4 processor.
"At the moment I have the top housing off and can disconnect the SCSI data cable from the back of the original Apple/Seagate 2 GB hard drive (model ST32151N) as well as the power cable from that hard drive. Now just for greater certainty for my understanding your advice: Move the SCSI data cable from the original Apple/Segate 2 GB drive to the good drive a Western Digital WD400 40 GB drive manufactured in 2003 AND disconnect ONLY the power cable from the Apple/Segate 2 GB right?"
You don't have a 40 GB Western Digital "SCSI" hard drive connected to the PCI controller card. Your 2003 "WD400" hard drive is an IDE/EIDE device connected to an ATA PCI controller card, not a SCSI controller card. The system will recognize the controller card and its connected drives as "SCSI" devices, but they are not. The IDE/EIDE interface is a 40-pin connection, while the original SCSI I/II devices had a 50-pin connection. Because of its physical incompatibility and different internal circuitry, you cannot connect that newer drive to the original SCSI cable in your 8500.
As for disconnecting stubborn cables from hard drives, always start with the power connection. In some cases, the flared tab on one side partially covers the data ribbon cable's connector. When that occurs, it needs to be disconnected first and installed last. I've found that wearing a latex or nylon glove provides your fingertips with a better grasp on the plug being removed. When holding it by its sides, the power plug needs to be gently wiggled from side-to-side, to start loosening it. You can slip off the plug, when using needlenose pliers and damage the wires coming out of the back of the plug. You can also damage/crack the plastic frame that separates the connection ports. The data ribbon cable should be grasped at one side and gently pulled on until it starts to come loose, then switch to the other side of the cable and do the same. Alternate back and forth, until it comes out. Many of the data ribbon cables used on IDE/EIDE drives have a large looped label or pull loop at the connectors, to assist with removal. Because you shouldn't consider running OS X on an 8500 with the stock processor (even with the help of the third-party utility "XPostFacto"), you should boot from a pre-OS X (retail version/universal installer disk) and use Drive Setup (in the Utilities folder) to reformat the 40 GB hard drive. Choose to format it as a Mac OS Extended (HFS+) volume and select the "Include Mac OS 9 Drivers" option.