IMac Stuck on White Screen with Apple Logo

Currently own: iMac 21.5" 2009 version with Snow Leopard, 4GB Ram, 500 GB Hard drive
This computer was sitting in storage of my basement for 2 years because I was out of town on business.
When I came home the computer worked fine. But earlier this evening it was on sleep mode and the dreadful color wheel was on. So I rebooted it, only to see that it was stuck on the white loading screen with the Apple logo. And nothing more. Panic struck me and I tried restarting it again, to no avail. Then I tried rebooting in Safe mode- but it won't respond. THEN I called Apple Care, and they tried to have me go through the process where it checks the Hardware. It took 45 minutes and then the screen said "It was modified", or something to that degree. But when we reboot it, it returned to the white screen.
I am so upset. I now have an appointment with the Apple store on Monday. I don't have a warranty anymore. How much is it going to cost if they have to replace to hard drive? I thought Apple computers were meant to last! This is beyond ridiculous! I had not downloaded anything wrong, wasn't on crazy websites. It still had over 350 GB of space left. Why didn't the tests we did over the phone work? Is my computer broken? I do have an external hard drive with Time machine, so I am not concerned about losing my data. I am, however, concerned about shelling out another $1500 for a new computer!

If you are taking it to Apple they will fix it for you, but they will install Snow Leopard. If you want the current Mavericks you can download that yourself from your home and install it. This is dependent somewhat on what model you actually have.
Upgrading from Snow Leopard to Lion or Mountain Lion
You can upgrade to Mountain Lion from Lion or directly from Snow Leopard. Mountain Lion can be downloaded from the Mac App Store for $19.99.
If you sign into the App Store and try to purchase Mountain Lion but the App Store says your computer is not compatible then you may still be able to upgrade to Lion per the following information.
A. Upgrading to Mountain Lion or Mavericks
To upgrade to Mountain Lion or Mavericks you must have Snow Leopard 10.6.8 or Lion installed. Purchase and download Mountain Lion or Mavericks (Free) from the App Store. Sign in using your Apple ID. Mountain Lion is $19.99 plus tax. The file is quite large, over 5 GBs, so allow some time to download. It would be preferable to use Ethernet because it is nearly four times faster than wireless.
     OS X Mountain Lion — System Requirements
     OS X Mavericks- System Requirements
       Macs that can be upgraded to OS X Mountain Lion
         1. iMac (Mid 2007 or newer) — Model Identifier 7,1 or later
         2. MacBook (Late 2008 Aluminum, or Early 2009 or newer) —
             Model Identifier 5,1 or later
         3. MacBook Pro (Mid/Late 2007 or newer) — Model Identifier 3,1 or later
         4. MacBook Air (Late 2008 or newer) — Model Identifier 2,1 or later
         5. Mac mini (Early 2009 or newer) — Model Identifier 3,1 or later
         6. Mac Pro (Early 2008 or newer) — Model Identifier 3,1 or later
         7. Xserve (Early 2009) — Model Identifier 3,1 or later
To find the model identifier open System Profiler in the Utilities folder. It's displayed in the panel on the right.
Are my applications compatible?
         See App Compatibility Table — RoaringApps.
B. Upgrading to Lion
If your computer does not meet the requirements to install Mountain Lion, it may still meet the requirements to install Lion.
You can purchase Lion by contacting Customer Service: Contacting Apple for support and service - this includes international calling numbers. The cost is $19.99 (as it was before) plus tax.  It's a download. You will get an email containing a redemption code that you then use at the Mac App Store to download Lion. Save a copy of that installer to your Downloads folder because the installer deletes itself at the end of the installation.
     Lion System Requirements
       1. Mac computer with an Intel Core 2 Duo, Core i3, Core i5, Core i7,
           or Xeon processor
       2. 2GB of memory
       3. OS X v10.6.6 or later (v10.6.8 recommended)
       4. 7GB of available space
       5. Some features require an Apple ID; terms apply.
I can't help you any more if you don't have the installer DVD, so you will have to wait until Monday. I had hoped we might get you working before then, but that isn't going to happen, I"m afraid.

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