IMAC wont startup/Gray Screen

I have an IMAC G5 I bought a little over 2 years ago. A couple of weeks ago everything was fine and then it stopped recording some video I shot for my church.
My #1 problem is that the screen is light gray with a dark gray rectangle in the middle that says,
You need to restart your computer, hold down the power button for a few seconds or press restart.
I have done this 7,8 times and the same screen comes up.
Also my #2 Problem is that I placed a DVD in it thinking it was the boot disk which it isn't and the IMAC want eject it either.
Can anyone tell me whats up and the steps to take for a cure?
Thanks a bunch
Steve J
IMAC 1.8 GH 250GB @ 7200rpm   Mac OS X (10.3.5)  
IMAC 1.8 GH 250GB @ 7200rpm   Mac OS X (10.3.5)  

What you are experiencing is a kernel panic:
UNIX-style operating systems (such as Mac OS X, Mac OS X Server, AIX, and A/UX) may experience a type of error called a "kernel panic," which may provide information useful for software developers.
A kernel panic is a type of error that occurs when the core (kernel) of an operating system receives an instruction in an unexpected format, or that it fails to handle properly. A kernel panic may also follow when the operating system is not able to recover from a different type of error. A kernel panic can be caused by damaged or incompatible software or, more rarely, damaged or incompatible hardware.
This article should help you in resolving the problem.
Let us know how you make out,
Miriam

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