Greetings,
Sounds like the computer is on, but it cannot load the Mac operating system.
While troubleshooting the issue, make sure you have nothing plugged into the computer except the power cable.
Try a Safe Boot:
http://support.apple.com/kb/HT1455
__This can take longer than normal to start up. If it hasn't gotten beyond the Apple with the spinning gear after 20 minutes then try the next step:
Use Disk Utility on your Install disks to check and repair the drive:
http://support.apple.com/kb/TS1417
If the issue persists at that point a reinstall of the Mac OS on this computer would be my next step. Before you do that, do you have backups of your data like with Time Machine? If there is important data on the computer it would be a good idea to backup before reinstalling just in case something goes wrong.
If you have access to another Mac you can use a firewire cable to move files in Target Disk Mode:
http://docs.info.apple.com/article.html?path=Mac/10.6/en/8443.html
Hope that helps.