The tests that you have done do seem to cover all possibilities. The machine will boot from ROM, with the hard disk visible, which ought to rule out at least the most obvious hardware faults. Also, the hard drive itself and the operating system appear to be OK. A PRAM reset does not change anything.
Do you have access to a bootable disk tools floppy with Disk First Aid and Apple HD SC Setup? If so, you could begin by checking whether the hard disk shows up in Disk First Aid (if yes, verify, and repair if needed). You may then want to run Apple HD SC Setup and update the hard disk drive driver.
It is of course thinkable that some kind of borderline situation exists, where an electronic component is about to fail. A close examination (with a magnifying glass) of the board(s) should reveal leaking/bulging/discoloured electrolytic capacitors et cetera. At the same time, it may be a good idea to check the voltage of the (3.6 V) battery. A warning: All work inside a compact Macintosh computer can be very dangerous because of high voltages in certain areas (even when the computer has been switched off and disconnected from the mains), and must be carried out by someone with the necessary expertise.
Jan