Folder With Question Mark Appears On Start Up: Computer Useless

When I turn the power on, a folder with a question mark flashes in the middle of the screen. The computer becomes useless. I can't go further. When I turn the power off and then on, the same thing happens.
This has happened to me before, but a long time ago. I forget the precise fix. Could someone advise as to the reason for this, and what to do about it? Thanks.

Hi frank_ohara,
The folder with the question mark, I'd say about 95% of the time, indicates a failed or failing HD. The exact meaning of the icon on startup is that no valid bootable OS (or startup volume) could be located. To further complicate matters, I've seen machines with failed HDs lock up the system bus and prevent the unit from properly booting to an optical drive when a disc is inserted.
If you can't startup the computer (with the System Installation disc) inserted by holding "Option" to get to the startup manager, I'd then recommend removing the HD from the unit and trying to startup. You can always "insert" the drive back in on the fly to run diagnostics via Disk Utility. It's tricky to do because you'll have to have the battery removed but it might be worth a shot given where you're currently at in the process.
Do you have a backup of the data? Is there any data of significant value on the machine, currently?

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