No, unfortunately this won't work because the memory card uses the same yellow wire as the controller does, and you can't have two different signals travelling down the yellow wire. if you were to set it up with both a power and eject button, both would do both, meaning that when you pressed the power button it would try to turn on/off and open the dvd tray at the same time, and the same would happen if you pressed the eject button on the controller.
you could, however, have the power button on one controller and the eject on another.
EDIT: For fixing your LED problem check out this pic:
Just solder the corresponding wires on the back of the power eject pcb... I've done it a bunch of times, (including once today) and it works like a charm!This post has been edited by freakk123: Mar 27 2005, 11:33 PM