I'm no expert on this. I have not seen the problem with my own eyes. I know what I read on the internet.
According to you, it's not necessarily that logic board is at fault if LED 3 does not light on.
I do not know the meaning of LED 3 lite or non-lite.
I went through the hyperlinks you provided and it's quite risky.
I not sure what you are referencing. My worry would be trashing the logic board. You have to evaluate the effects on your personal safety.
I'd try the repair after consulting with my friend who has an Electrical Engineering degree.
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Someone may be able to identify the problem, if you took a close up of the capacitors. They look like very miniature beer cans.
"Additionally you may also go to any Apple Retail Store with a Genus Bar, and have the Apple folks take a look inside the G5 and look at the caps on the iMac logic board for you."
http://jimwarholic.com/2008/07/how-to-repair-apple-imac-g5.php
I referenced this article above.
Here is a link with pictures. The top of the "can" seems to pop.
http://en.wikipedia.org/wiki/Capacitor_plague
Here is a picture of G5 with the capacitors circled.
http://www.flickr.com/photos/30825931@N06/3038393309/
http://www.gcsdblogs.org/roodhouse/?p=2124
Note: Some g5 power supplies have the problem too.
http://schutt.org/blog/2011/10/the-capacitor-plague-strikes-again/