Controlling LED brightness with a PWM signal to LED driver

So after hooking up my system, I burned out the pin #3 on my Arduino. That is the pin I was using to provide PWM to the LED driver. I had my system hooked up identical to the below picture "circuit B" (taken from the suggested post on common grounds). I had an N-channel MOSFET as my transistor. I had all my grounds meet on the bus of a breadboard. I was powering my arduino via USB

After several tests, pin #3 is definitely burned but the rest of the arduino seems to be alive.

Any suggestions or things I may have done wrong?

CaptureArd.PNG