Yes

Then I am not sure why the old t-stat had the jumper. The outdoor and the indoor will both have a transformer. That is why the one inside was getting hot you may have had double power on it.

The one on the outside was hot . I cut the wires from the thermostat where they came into the outside unit, I have my 24v at that point. I reconnected them and have 0v at the contactor coil. The only thing between those two points is that transformer. What's your opinion?

Did you cut the wires with the ac breaker on? If so you will probably need a new transformer

No , this started with a heavy thunderstorm. I heard a pop and went to the thermostat, it smelled burned and the AC hasn't worked since.

Ah OK. Yes it could have burnt the transformer when it burnt the t-stat

I'm going to price a new transformer. Thanks for all your help.

Hope this is your problem, please let us know how it turns out.