No, I'm sure it was the correct ram (PC 5300) and I installed it correctly- I'm not a noob and I've done this before. Both sticks of 2 gb ram work fine if they are installed in either slot along with an additional 1 gb stick. Right now, I'm running 3 gb on my iMac and I have the other 2 gb stick installed in a netbook. Both work fine. They just won't work together in the iMac at the same time.
I know macs can be picky about timing, but this ram does have the MacOS logo on it, making me think that it's appropriate. Plus, when you buy from a retail store (microcenter), there's no way of knowing what the CAS timings are. Maybe the ram is just barely within apple specs, and when installed together, the latency is too long for the comp to boot. I don't know- but from the box, it IS the correct ram and it WAS installed correctly.
Honestly, between this problem and the fact that this model won't run a 64 bit kernel despite having a Core2Duo, I'm quite disappointed. If it was not for the investment in the massive 24 in. screen, I'd consider moving on.