Hi, Chris -
Your description of the screen sounds like what is shown in the pic in this Apple KBase article -
http://docs.info.apple.com/article.html?artnum=106482
If so, then the firmware password function has been invoked. If you have not yet tried, try clicking the righthand button without entering anything in the password entry box.
Unfortunately, if you can not get past it, and it's real, you will not be able to boot the machine to any disk or volume unless you know the required password. It is a reasonably serious level of security, originally directed toward owners of portable machines.
There is a way that such a password can be disabled. For reasons of security, even if we do know the solution we do not post it in these forums - since these forums are accessible by anyone, even by those who have not registered, posting the solution could help nefarious types gain unauthorized access to machines. To find out how to do it, contact Apple's Tech support, or an AASP (Authorized Apple Service Provider).