IMac ruined ? black ashes and burning scent!

Hi ya'll.
Seems a bit rude to just barge in here with my problem but anyway
About 2 years ago I bought a 17"iMac at the Switch-Store in Antwerp. It's run smoothly and has been a great computer and creative tool for me up till now.
This morning when I turned it on,I heard a loud popping noise and smelled like something got burned also there were ashes coming out of every opening (speakers,vent,etc)...it's completely dead. Now I'm anything but a pro but I know that can't be a good thing.
I've already been to the local Mac shop in town and they don't think it's anything that might be reparable but I can bring it in to have it checked out anyway if I want to.
Sooo,has this happened to anyone else or does someone have any idea what the ****'s happened, PLEASE help me out.

As I said, I've been surprised by the results of a power supply failure - you just never know. If the only thing wrong is a blow-out of ash and new power supply the cost will be far less than a new or refurb computer. Of course if the logic board or other component also died a new computer begins to make more sense. If you have a local reseller try dealing first - ask for a diagnostic and estimate with the understanding that the diagnostic fee will be waived if you decide to buy a new computer from them instead.

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