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I would be interested in seeing what a Linux Live CD would tell you during start-up. Or if there are any log files that could shed some light on this. Try both the graphical desktop and the command line boot up states. If you can't get to the log files, take a digital picture of the screen before it crashes.
If you are going to spend that much, I would look into getting a used laptop that is working, or even a new one. There are also cheaper ways to get MacOSX, but there are some issues with it.
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