Do you put all of your motherboard standoffs into your case?

I may be wrong, but the grounding is done on both sides of the holes, so the red washers wouldn't necessary prevent grounding. If you take a look at both sides of these holes, they pretty much have metal contact showing, so I believe grounding is possible on both sides. Now, if you use the red washers on both sides of all the holes, then I see that grounding may be an issue.
 
Just for shits and giggles, I mounted a motherboard in an Antec 1650 case, using only threaded plastic standoffs. The board is a Gigabyte GA-K8NS Pro (Socket 754), running a simple Sempron 2800+, and uses an Antec Truepower 480 power supply.

The board powered up just fine.
 
Just for shits and giggles, I mounted a motherboard in an Antec 1650 case, using only threaded plastic standoffs. The board is a Gigabyte GA-K8NS Pro (Socket 754), running a simple Sempron 2800+, and uses an Antec Truepower 480 power supply.

The board powered up just fine.

Not surprizing.
Your Motherboard does not have to be directly grounded to the case for it to work.
However in order to be properly mounted as a normal electronic device in a metal housing, it should be grounded to the case. This is standard practice and required for UL or CSA certification. And basic general overall safety.

Also chances are even though you isolated it from the case with plastic standoffs, your case and motherboard are probably still touching via the IO/Sheild ( metal custom cutout bracket near all your ports) usually there are tabs that make sure it touches the metal housings on your network jacks etc..
 
I think all the connectors of the PSU have one or more grounding wires and the ATX and ATX12V connectors go directly to the mobo itself so I would say that grounding is already done that way, too.
 
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