Dreaded Apple logo and spinning circle.

I have the 20 inch I mac and I am running leopard. Last night although my mac is on a power bar we did have a few power surges. Now this morning all i get is the logo and spinning circle I have checked the ram it all seems good tried it without no luck. I have tried booting with the c key, then the shift, then tried to reset the NVRAM no such Luck i put in my leopard cd thought i could boot from it and no but now i can't get it out, even pressing the mouse and all that. Where should i go from here? Please help

HI,
See if you can boot in Safe Mode
What is Safe Mode
Resolve startup issues and perform disk maintenance with Disk Utility and fsck
Carolyn

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