Brand new iMac 27" i3 is flashing blue screen

My brand new Imac (one-day old) is acting very odd as it slowly flashes a pulsating light blue screen when I try to access Apple Menu (restart/sleep/shutdown) features. No matter what I do it will not turn off. I have since had to do a hard shutdown but now it stops at an error screen upon start-up that tells me to restart!
I am Mac savvy and this has never happened to me. Prior to this happening, I called Apple Tech Support because I could not use their Mac Migration feature to move my info off of a G4 running 10.4.11. Tech support could not help either as wireless, ethernet and direct Firewire attempts yielded no Migration results. I finally had to pull the hard drive out of the G4 and hooked it up to the new iMac. Everything seemed to transfer except when it was done the contents of what I just copied thru Migration was nowhere to be found. That is when I started experiencing the slow-flash blue screen phenom and is where I am stuck today.
I am ready to take this thing back. In all my years I have never had a problem like this with an Apple product. Any help or insight will be appreciated.

ONE
Paul has given you good advice in that I would reinstall the OS from the supplied disks to get your computer working properly.
TWO
Then re-install your old programs (only those you really need since they are likely PowerPC, not “universal” Intel programs) from their original disks.
THREE
If you have the user data from the old drive backed up, then hopefully you can restore your user data to the new drive or buy an enclosure and access the old data as needed (which is what I did when originally migrating from a Power Mac G5 to the iMac (late 2009).
Alternatively, if step ONE is problematic and your machine is defective, you can likely return it to Apple within 14 days (or whatever the law is in your country) for a replacement or refund and purchase a new iMac just released today.  Steps TWO and THREE still apply in this case.

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    com.apple.driver.IOBluetoothHIDDriver          4.2.3f10
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    com.apple.iokit.IOAcceleratorFamily          98.14
    com.apple.nvidia.driver.NVDAGK100Hal          8.2.4
    com.apple.nvidia.driver.NVDAResman          8.2.4
    com.apple.iokit.IOBluetoothFamily          4.2.3f10
    com.apple.iokit.IOSurface          91
    com.apple.iokit.IOBluetoothHostControllerUSBTransport          4.2.3f10
    com.apple.driver.AppleBacklightExpert          1.0.4
    com.apple.iokit.IONDRVSupport          2.4.1
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    com.apple.driver.AppleHDAController          2.6.0f1
    com.apple.iokit.IOHDAFamily          2.6.0f1
    com.apple.driver.X86PlatformPlugin          1.0.0
    com.apple.driver.AppleSMC          3.1.8
    com.apple.driver.IOPlatformPluginFamily          5.7.0d10
    com.apple.AppleGraphicsDeviceControl          3.4.35
    com.apple.iokit.IOAcceleratorFamily2          98.14
    com.apple.iokit.IOGraphicsFamily          2.4.1
    com.apple.driver.AppleThunderboltEDMSink          2.1.3
    com.apple.driver.AppleUSBMergeNub          650.4.0
    com.apple.driver.AppleUSBComposite          656.4.1
    com.apple.driver.AppleThunderboltDPOutAdapter          3.1.7
    com.apple.driver.AppleThunderboltDPInAdapter          3.1.7
    com.apple.driver.AppleThunderboltDPAdapterFamily          3.1.7
    com.apple.driver.AppleThunderboltPCIDownAdapter          1.4.5
    com.apple.driver.CoreStorage          380
    com.apple.iokit.IOUSBUserClient          660.4.2
    com.apple.driver.AppleThunderboltNHI          2.0.1
    com.apple.iokit.IOThunderboltFamily          3.2.7
    com.apple.iokit.IOEthernetAVBController          1.0.3b4
    com.apple.iokit.IO80211Family          630.35
    com.apple.driver.mDNSOffloadUserClient          1.0.1b5
    com.apple.iokit.IONetworkingFamily          3.2
    com.apple.iokit.IOAHCIFamily          2.6.5
    com.apple.iokit.IOUSBFamily          675.4.0
    com.apple.driver.AppleEFINVRAM          2.0
    com.apple.driver.AppleEFIRuntime          2.0
    com.apple.iokit.IOHIDFamily          2.0.0
    com.apple.iokit.IOSMBusFamily          1.1
    com.apple.security.sandbox          278.11
    com.apple.kext.AppleMatch          1.0.0d1
    com.apple.security.TMSafetyNet          7
    com.apple.driver.AppleKeyStore          2
    com.apple.driver.DiskImages          371.1
    com.apple.iokit.IOStorageFamily          1.9
    com.apple.iokit.IOReportFamily          23
    com.apple.driver.AppleFDEKeyStore          28.30
    com.apple.driver.AppleACPIPlatform          2.0
    com.apple.iokit.IOPCIFamily          2.9
    com.apple.iokit.IOACPIFamily          1.4
    com.apple.kec.corecrypto          1.0
    com.apple.kec.pthread          1
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    Memory Module: BANK 0/DIMM0, 8 GB, DDR3, 1600 MHz, 0x0198, 0x393930353432382D3138362E4130304C4620
    Memory Module: BANK 1/DIMM0, 8 GB, DDR3, 1600 MHz, 0x0198, 0x393930353432382D3138362E4130304C4620
    Memory Module: BANK 0/DIMM1, 8 GB, DDR3, 1600 MHz, 0x0198, 0x393930353432382D3138362E4130304C4620
    Memory Module: BANK 1/DIMM1, 8 GB, DDR3, 1600 MHz, 0x0198, 0x393930353432382D3138362E4130304C4620
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    Bluetooth: Version 4.2.3f10 13477, 3 services, 23 devices, 1 incoming serial ports
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    Serial ATA Device: APPLE HDD ST3000DM001, 3 TB
    USB Device: FaceTime HD Camera (Built-in)
    USB Device: BRCM20702 Hub
    USB Device: Bluetooth USB Host Controller
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    Dawn,
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    Hi, thanks for helping. Here are the results from your program.
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    Thanks..---
    Hardware Information:
              iMac (21.5-inch, Late 2013)
              iMac - model: iMac14,1
              1 2.7 GHz Intel Core i5 CPU: 4 cores
              8 GB RAM
    Video Information:
              Intel Iris Pro - VRAM: 1024 MB
    System Software:
              OS X 10.9.2 (13C64) - Uptime: 0 days 6:34:53
    Disk Information:
              APPLE HDD HTS541010A9E662 disk0 : (1 TB)
                        EFI (disk0s1) <not mounted>: 209,7 MB
                        Macintosh HD (disk0s2) / [Startup]: 999,35 GB (548 GB free)
                        Recovery HD (disk0s3) <not mounted>: 650 MB
    USB Information:
              Apple Inc. BRCM20702 Hub
                        Apple Inc. Bluetooth USB Host Controller
              Apple Inc. FaceTime HD Camera (Built-in)
              HP Deskjet D2300 series
              Western Digital Ext HDD 1021 2 TB
                        iTunes backup (disk2s1) /Volumes/iTunes backup: 1,1 TB (142,21 GB free)
                        Archive (disk2s2) /Volumes/Archive: 900,26 GB (490,8 GB free)
              Western Digital Ext HDD 1021 2 TB
                        iMac backup (disk1s1) <not mounted>: 899,97 GB
                        iTunes (disk1s2) <not mounted>: 1,1 TB
    FireWire Information:
    Thunderbolt Information:
              Apple Inc. thunderbolt_bus
    Launch Daemons:
              [System] com.adobe.fpsaud.plist 3rd-Party support link
              [System] com.adobe.SwitchBoard.plist 3rd-Party support link
              [System] com.bombich.ccc.plist 3rd-Party support link
              [System] com.bombich.ccc.scheduledtask.B7A50B7A-D119-42A1-8C3E-EDF408B7B87E.plist 3rd-Party support link
              [System] com.bombich.ccc.scheduledtask.DC273830-C535-44B5-B601-D0F0504330F4.plist 3rd-Party support link
              [System] com.microsoft.office.licensing.helper.plist 3rd-Party support link
              [System] com.oracle.java.Helper-Tool.plist 3rd-Party support link
    Launch Agents:
              [System] com.adobe.AAM.Updater-1.0.plist 3rd-Party support link
              [System] com.oracle.java.Java-Updater.plist 3rd-Party support link
    User Launch Agents:
              [not loaded] com.bombich.ccc-user-agent.plist 3rd-Party support link
              [not loaded] com.google.keystone.agent.plist 3rd-Party support link
    User Login Items:
              iTunesHelper
              Mailplane 3
              TinyGrab
              Dropbox
              TextExpander
              Skype
    Internet Plug-ins:
              FlashPlayer-10.6: Version: 12.0.0.77 - SDK 10.6 3rd-Party support link
              QuickTime Plugin: Version: 7.7.3
              Flash Player: Version: 12.0.0.77 - SDK 10.6 Outdated! Update
              AdobePDFViewer: Version: 10.1.1 3rd-Party support link
              Default Browser: Version: 537 - SDK 10.9
              SharePointBrowserPlugin: Version: 14.3.9 - SDK 10.6 3rd-Party support link
              JavaAppletPlugin: Version: Java 7 Update 51 3rd-Party support link
    Safari Extensions:
              1Password: Version: 4.1.0
    Audio Plug-ins:
              BluetoothAudioPlugIn: Version: 1.0 - SDK 10.9
              AirPlay: Version: 2.0 - SDK 10.9
              AppleAVBAudio: Version: 203.2 - SDK 10.9
              iSightAudio: Version: 7.7.3 - SDK 10.9
    iTunes Plug-ins:
              Quartz Composer Visualizer: Version: 1.4 - SDK 10.9
    3rd Party Preference Panes:
              Flash Player  3rd-Party support link
              Java  3rd-Party support link
    Old Applications:
              /Library/Application Support/Microsoft/MERP2.0
                        Microsoft Error Reporting:          Version: 2.2.9 - SDK 10.4 3rd-Party support link
                        Microsoft Ship Asserts:          Version: 1.1.4 - SDK 10.4 3rd-Party support link
              Solver:          Version: 1.0 - SDK 10.5 3rd-Party support link
                        /Applications/Microsoft Office 2011/Office/Add-Ins/Solver.app
              /Applications/Microsoft Office 2011/Office
                        Microsoft Graph:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Microsoft Database Utility:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Microsoft Office Reminders:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Microsoft Upload Center:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        My Day:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        SyncServicesAgent:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Open XML for Excel:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Microsoft Alerts Daemon:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Microsoft Database Daemon:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Microsoft Chart Converter:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Microsoft Clip Gallery:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
              /Applications/Microsoft Office 2011
                        Microsoft PowerPoint:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Microsoft Excel:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Microsoft Outlook:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Microsoft Word:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        Microsoft Document Connection:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
              Microsoft Language Register:          Version: 14.3.9 - SDK 10.5 3rd-Party support link
                        /Applications/Microsoft Office 2011/Additional Tools/Microsoft Language Register/Microsoft Language Register.app
              dynamiclinkmanager:          Version: 6.0.0 - SDK 10.5 3rd-Party support link
                        /Library/Application Support/Adobe/Common/dynamiclink/CS6/dynamiclinkmanager.app
              Microsoft AutoUpdate:          Version: 2.3.6 - SDK 10.4 3rd-Party support link
                        /Library/Application Support/Microsoft/MAU2.0/Microsoft AutoUpdate.app
              dynamiclinkmediaserver:          Version: 6.0.0 - SDK 10.5 3rd-Party support link
                        /Library/Application Support/Adobe/Common/dynamiclinkmediaserver/1.0/dynamiclinkmediaserver.app
    Time Machine:
              Skip System Files: NO
              Mobile backups: OFF
              Auto backup: YES
              Volumes being backed up:
                        Macintosh HD: Disk size: 930.71 GB Disk used: 420.35 GB
              Destinations:
                        iMac backup [Local] (Last used)
                        Total size: 838.16 GB
                        Total number of backups: 21
                        Oldest backup: 2014-01-05 03:58:08 +0000
                        Last backup: 2014-04-13 19:28:15 +0000
                        Size of backup disk: Too small
                                  Backup size 838.16 GB < (Disk used 420.35 GB X 3)
              Time Machine details may not be accurate.
              All volumes being backed up may not be listed.
    Top Processes by CPU:
                   3%          iMovie
                   3%          PhotoStreamAgent
                   3%          iPhoto
                   1%          iTunes
                   1%          WindowServer
    Top Processes by Memory:
              901 MB          iMovie
              688 MB          Finder
              483 MB          iPhoto
              442 MB          iTunes
              295 MB          com.apple.MediaLibraryService
    Virtual Memory Information:
              99 MB          Free RAM
              3.50 GB          Active RAM
              3.42 GB          Inactive RAM
              860 MB          Wired RAM
              5.94 GB          Page-ins
              103 MB          Page-outs

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