IMac G5 keeps rebooting and and funny smell is coming from vent

My iMac G5 won't restart completely. It just gets to the user screen and powers down as if someone had pulled the chord and then restarts (I think this is because I had it set to reboot on power failure in the energy saver preference pane). This continues in a loop.
But it is worse. I noticed one day that a smell was coming from my iMac that was almost like paint from a child's paint set. It seems to be a potential burning smell. This was when my computer was working. I put my computer to sleep for the night when in the middle of the night (it was after I turned on a light in the room, coincidence, I'm not sure), the computer restarted, from sleep, and started doing what I just described.
I took of the back cover to try to reset the PMU, which didn't work, but I also powered it with the cover off and LED's 1-3 came on in succession (but not 4) before it restarted.
I ran the Quick Test on the apple Hardware test CD and to my surprise the power never failed during the test. The test showed no errors though. I am afraid to run the extended test because I have 2 GB of RAM and the test takes a couple of hours to run, which would not be good if something really is burning in my computer.
I want to say that there is a problem with the power supply, but when I had the cover off, it seemed that the smell was coming from the vent right above the CPU.
My AppleCare is expired.

My iMac is in this serial number range, however I noticed this:
from linked page:
How long is the iMac G5 Repair Extension Program available?
The program covers affected iMac G5 computers for up to three years from the original date of purchase. Apple will continue to evaluate the repair data and will provide further repair extensions as needed.
The purchase date was more than three years ago (otherwise, it would still be under warranty). Do I still qualify. I will defiantly take my Mac to the my local Genius Bar, regardless.

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