IMac G5 won't detect any S-ATA disks

Hi there,
I would really appreciate help with the following:
I work as a computer support tech at a university. In front of me right now I have an out of warranty iMac G5 with the following symptoms:
- on boot, it chimes normally; after that, the screen goes blank (not black) and the fans start spinning madly. No error messages appear, nor any symbols regarding missing system disks etc.
- tried booting from different media (OS x.3 cd, OS X.4 dvd, external firewire drive w/OS X.4.6), won't work. It detects the system on the external fw drive, I can even select it when pressing alt on boot, but it won't start up from it; it displays a grey 'traffic sign'-like no-go sign.
- reset pram, no joy.
- After resetting pram, it booted from the Tiger dvd; it went through the first few screens of the installer, up until I need to select an install location: it does not display any drives nor partitions
- started drive utility: no drives detected apart from the install dvd.
- I opened up the casing and reset the PMU: no result.
- I disconnected the original s-ata drive: system boots up fine, but (of course) cannot find a hard drive; now it shows a 'no disk' blinking icon; fans behave normally with drive disconnected (i.e. not constantly working at full speed).
- I took out the hard drive and tested it in another system (G5 tower): boots fine from it, I can login, open apps etcetera; drive seems to work perfectly
- I put in another s-ata harddrive (Western Digital Caviar 200gigabyte S-ATA II): does not work either although the drive works perfectly on the other mac; I tried different jumper settings on the drive to ensure S-ATA I bandwith etc, but none work including no jumpers at all.
- Swapped RAM: no result
- Reset open firmware (reset-vram, set-defaults, reset-all, reboot): no result. I can't think of any way to approach this machine for a firmware update, so I can't try that.
- checked the mainboard for any suspicious-looking condensators etcetera: none.
To me this seems like a faulty s-ata controller or some other motherboard-related hardware fault. Do you agree?
Do you think I've skipped any steps or is there anything left to try?
And if necessary, is an out of warranty repair possible, and how much would this cost, approximately?
Thank you very much in advance for your time and expertise,
Kind Regards,
Sander
iMac G5   Mac OS X (10.3.9)  

Thank you for the advice!
The serial number starts with W844, which makes it indeed eligible for the extended repair program. But I wonder, isn't this program meant for iMacs with symptoms like scrambled or distorted video, no video or no power?
This mac has a problem with detecting its harddrive and other media, and only if a s-ata disk is built in. When taken out, it boots nicely from external FW media or dvd.
The Apple Hardware Test oddly enough does not find any problem whatsoever. I think this might be because all it does to test the harddrive is directly interrogate the disks SMART-chip, which (correctly) reports no problems with the disk itself. The test does not attempt any reading/writing as far as I can tell. Neither does a program like Disk Warrior.
Do you think this is an early symptom of the display issue? Well, I suppose the machine needs repairing anyway, so we might as well try for the program. If it's another issue, there will probably a hefty bill, right?
Kind regards,
Sander
iMac G5 Mac OS X (10.3.9)

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