[ATTACH]57165[/ATTACH] Need to move load center, can I place all of the current wires into a junction box and attach new wire to run to new load center, I hope the drawing explains.

I was doing DIY wainscoting in my dining room, and I put a few nails in the walls to secure the panel frames. So here's the problem - I have two wall lights on a wall. I noticed something weird when I was hammering the nails into that wall. I felt I hit something very hard (the stud??) and the nail could not go all the way in. (I used 1 1/4 inch finish nails) After I finish that wall, I turned on the wall lights, and Boom! The lights flashed and went out, tripped the breaker. I immediately turned off the switch, and use voltage tester to test the nails on that wall. The nail that did not go all the way in shows positive readings. All other nails were fine. I pulled out that particular nail, and went on testing the other nails again. Now the weird thing is, they weren't showing positive before but after I pulled the first nail out, 2 of them became positive. I pulled the 2 out, and re-tested. Another 2 became positive. Anyways, I ended up pulling out 5 nails in total and now all the remaining nails tested fine. I turned on the wall lights again and now the lights are working fine!!! So what was that Boom? Can anybody tell me what happened? did I or did I not hit an electrical wire? Do I need to worry? I really don't want to call an electrician to open my drywalls coz that means I have to do a lot of work to patch the wall and re-paint and everything! Please help !!!:confused: