Blue screen on start up.  The wheel spin and the blue screen gets brighter for a second, then the blue screen dims and it repeats with the wheel.

When I start up my imac, I get a blue screen.  The wheel spin and the screen gets brighter for a second, then the blue screen dims and it repeats with the wheel.

Are you referring to the startup screen which is normally gray with the dark gray Apple logo or are you referring the login screen which is typically blue? If it's the latter you might give this a try:
Clearing Caches to Fix Login Problem
You will need to type some Unix commands. If you are not comfortable with this, I don't know of anything other than a re-install. But if you are careful, you should be OK. I recommend you print this out in a largish mono-spaced font so you don't miss any spaces (or add extra ones). Note that case is important.
Be careful. Some of these commands are dangerous, since you are going to be root.
Start up in Single-user Mode. When this has finished you will see a prompt ending in '#', although there may be other messages. Enter the following commands after the prompt:
/sbin/fsck -fy
Press RETURN. Wait a few seconds for 8-10 lines of output. If the last line says repairs were carried out, repeat this command until you get a message 'The volume <yourdiskname> appears to be OK'. Then continue with:
/sbin/mount -uw /
cd /Library/Preferences
rm com.apple.loginwindow.plist
rm com.apple.windowserver.plist
cd /Library/Caches
rm -r *
cd /System/Library
cd /System/Library/Caches
rm -r *
reboot
Press RETURN after each command.
This should now take you to a proper login screen after the normal boot sequence. You should then Repair Permissions by using Disk Utility (in your /Applications/Utilities folder).
If it's the former then reinstall OS X. For Snow Leopard:
Reinstall OS X without erasing the drive
Do the following:
1. Repair the Hard Drive and Permissions
Boot from your Snow Leopard Installer disc. After the installer loads select your language and click on the Continue button. When the menu bar appears select Disk Utility from the Utilities menu. After DU loads select your hard drive entry (mfgr.'s ID and drive size) from the the left side list.  In the DU status area you will see an entry for the S.M.A.R.T. status of the hard drive.  If it does not say "Verified" then the hard drive is failing or failed. (SMART status is not reported on external Firewire or USB drives.) If the drive is "Verified" then select your OS X volume from the list on the left (sub-entry below the drive entry,) click on the First Aid tab, then click on the Repair Disk button. If DU reports any errors that have been fixed, then re-run Repair Disk until no errors are reported. If no errors are reported click on the Repair Permissions button. Wait until the operation completes, then quit DU and return to the installer.
If DU reports errors it cannot fix, then you will need Disk Warrior and/or Tech Tool Pro to repair the drive. If you don't have either of them or if neither of them can fix the drive, then you will need to reformat the drive and reinstall OS X.
2. Reinstall Snow Leopard
If the drive is OK then quit DU and return to the installer.  Proceed with reinstalling OS X.  Note that the Snow Leopard installer will not erase your drive or disturb your files.  After installing a fresh copy of OS X the installer will move your Home folder, third-party applications, support items, and network preferences into the newly installed system.
Download and install the Combo Updater for the version you prefer from support.apple.com/downloads/.

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