Did you try booting into open firmware? I believe that you key combination in COMMAND+OPTION+O+F. It can be a real pain in the ass to get the command recognized. If I remember correctly, you have to press and hold the keys after the startup chime but before the screen comes to life.
If you get it to take, it should give you a white screen w. black text.
Type
init-nvram
reset all (might be reset-all)
reboot
Also recommend zapping the PRAM restart and press and hold command+option+P+R
you should hear the intial startup chime, keep holding the keys, you should hear another startup chime. Do this 2-3 time (just keep holding the keys and it will keep booting.
Check for loose or bad ram chips.
Macs are very picky when it comes to ram. I had to switch out ram to get OS X to install because it didn't like one of the DIMMs that I had installed.
Check the battery.
Is there anything other than a Keyboard and mouse connected. I've heard of Mac's not booting because of an overloaded USB bus.
I'm not sure about iMacs, but many G3's have what is called a CUDA switch. A small push button on the Logic Board near the PCI slots (on Desktop PowerMacs) It is basically a hard reset button.
Good Luck
Dan
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