Mac mini won't boot anymore

My Mac mini won't boot anymore. It's been running fine for months.
It's running Leopard Server 10.5.2 Build 9C31
It starts to boot, I get the first spinning gear with the gray screen, then the blue desktop blinks, then a second spinning gear on a gray screen and it appears to hang (the gear stops spinning).
I booted off the install DVD, ran disk utility, repaired the HD, repaired the permissions: the behavior is the same.
Safe mode doesn't work (same hang as above).
Single user mode does work.
I can connect to it via Server Admin while it appears hung.
The last few lines of the system log are:
May 15 18:38:58 server emond[67]: SetUpLogs: uid = 0 gid = 0
May 15 18:38:58 server emond[67]: SetUpLogs: opening /Library/Logs/EventMonitor/EventMonitor.error.log
May 15 18:38:59 server kextd[23]: writing kernel link data to /var/run/mach.sym
May 15 18:39:09 server KernelEventAgent[59]: tid 00000000 received unknown event (12)
May 15 18:39:20 server kernel[0]: display: Not usable
May 15 18:39:20 server com.apple.KerberosAutoConfig[126]: Kerberos configuration is up to date
May 15 18:39:20 server com.apple.ATSServer[125]: FODBCheck: New annex file created
May 15 18:39:21 server ARDAgent [130]: ******ARDAgent Launched******
May 15 18:39:21 server com.apple.KerberosAutoConfig[132]: Kerberos configuration is up to date
May 15 18:39:22 server ARDAgent [130]: call logout from LoginLogoutProxyCallBackFunction
May 15 18:39:22 server com.apple.launchd[1] (com.apple.RemoteDesktop.agent): Throttling respawn: Will start in 9 seconds
May 15 18:39:24 server loginwindow[58]: Login Window Started Security Agent
May 15 18:39:29 server servermgrd[53]: servermgr_calendar: created default calendar virtual host
May 15 18:39:31 server ARDAgent [146]: ******ARDAgent Launched******
May 15 18:39:32 server ARDAgent [146]: ******ARDAgent Ready******
May 15 18:39:33 server mdworker[109]: (Error) SyncInfo: Boot-cache avoidance timed out!
May 15 18:39:54 server Python[47]: CGImageSourceCreateWithData data parameter is nil
May 15 18:39:54 server com.apple.wikid[47]: Thu May 15 18:39:54 server.jeff.carpenter.name Python[47] <Error>: CGImageSourceCreateWithData data parameter is nil\n
May 15 18:39:56 server kernel[0]: AppleYukon2 - bad packet received. length: 1440, packet status bits: MII error
May 15 18:39:56 server kernel[0]: AppleYukon2: 00000000,00000001 sk98osx sky2 - - sk98osx_sky2::replaceOrCopyPacket tried N times
May 15 18:49:54 server kernel[0]: serialnumberd 194 FSWRITEDATA SBF /dev/dtracehelper 13 (seatbelt)
May 15 18:49:54 server kernel[0]: serialnumberd 194 FSREADDATA SBF /dev/autofs_nowait 13 (seatbelt)
May 15 18:49:54 server kernel[0]: serialnumberd 194 FSREADDATA SBF /usr/sbin 13 (seatbelt)
May 15 18:55:12 server kernel[0]: AppleYukon2 - bad packet received. length: 23, packet status bits: MII error
Any ideas?

Yes, it's been running Server since I purchased it.
I doubt the serial number is in use elsewhere: I purchased the 10-user version at a retail store in a sealed package and I've only installed it once.

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Fix The Bugs Please wrote:
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Cult of Mac post:
When the Apple Logo appears your Mac has found a valid system disk, and Mac OS X begins loading.
Apple Logo with Spinning Gear
Once the spinning gear appears the BSD kernel (Darwin) has assumed command and begins loading device drivers. Shortly thereafter it transfers command to the almighty (and controversial) launchd process. Such are the workings of UNIX.
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Older Intel Mac Mini that I use as an entertainment / movie center. Leopard.
I did a software update recently, but somehow botched it and interrupted the process.
Ever since then, it won't start up correctly. It chimes, disk powers up, but then it gets stuck on the screen with the apple and rotating propeller. Can go on for hours if you let it.
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Bought a USB keyboard specifically so I could press the T and tried it.
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OK, just found the answer while browsing the "more like this" answers that appeared after I posted my question.
I wasn't aware that the new Apple Aluminium Keyboard doesn't play nice with the Mini and that the Mini doesn't recognize this particular keyboard in time for the boot sequence.
Thank you for these helpful discussions:
https://discussions.apple.com/message/9306774#9306774
https://discussions.apple.com/message/9084810?messageID=9084810
https://discussions.apple.com/thread/1477855?threadID=1477855&tstart=0
Using the remote (press the menu key during boot-up) worked fine and I could choose to boot from a system disk.
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Hi all --
I've seen similar posts (http://discussions.apple.com/thread.jspa?messageID=12170891&#12170891) but thought I'd start a new one, mainly because I haven't heard anyone mention the startup chime.
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Thanks.
The Genius was able to get to the Apple logo and spinning... thing (what used to be the beachball). His theory was that as long as the Snow Leopard disc was in there, the boot process would never get to the Firewire port. Once I got home I literally pried the Snow Leopard disc out and put in the original install disc. But any progress whatsoever ends in the system bomb message.
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That is good news...the genius bar folks are generally great to deal with. Especially when you make an appointment and don't get all upset while waiting for someone to get free
As was said at the outset, be careful about software you install, not all is really good or necessary. If in doubt, just pose a question on here and you will get sound advice. We are all fellow users, many of whom have learned the hard way.
Keep in mind, this is a Mac OS X machine, not Windows which has everyone in the world writing viruses to attack.
Have a Happy New Year.

Mac mini won't boot anymore

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