Cheater plugs with amplifiers?

The prospective fire hazard is less than the prospective electrocution hazard. But eliminating the ground loop problem by using cheater plugs is an accepted audiophile risk.

I have always assumed that let's say an ungrounded power amp (at the power cord) would be grounded by the IC's running to a grouded preamp and or something else that "is" grounded down the line.. Is this faulty thinking?

Yes, Dekay. Different grounding paths and systems. One if for the electrical current feeding the the device and the other is for the line-level signal connecting the components. I have used cheater plugs for years with no problems. The second ground is extra insurance, but that does not mean that the first ground does not work. I live in New Orleans and uptown there are a lot of older house that use 2 prong outlets. Other than inconvience, I do not know of anyone who has had a problem. Most people are talking theory but in everyday use, I seriouly doubt anyone will report that they had an actual problem because of the lack of the second ground.