hi skuz,
I'm assuming that when you say, the 500R 'blows', you means it burns out?
If the 500R burns out with 12vdc across it, then it's power/wattage
dissipation is under rated for a 12v supply. The other two 1K0 are not
having any influence upon the 500R.
The current flowing in the 500R is, I= V/R, so Is= 12/500 =0.024A [24mA]
So W= V * I, 12 * 0.024 = 0.288 Watts, if you have rated the simulated
500R as less than 0.5W then you could have problems.
Remember, when you do your resistor wattage calculations, to consider
the ambient temperature the resistor will be working in. Read the specs.
Regards
EricG
PS: I hope I have not answered a 'homework' question.