MacBook won't start up after installing iTunes 8 & updates ...??

My MacBook is a little more than a year old (read, no longer under warranty ...) and it's currently in a coma.
Nothing was out of the ordinary prior to the MacBook going weird - I downloaded a bunch of photos from my camera, ejected a USB drive and immediately after that I tried to launch iPhoto - it froze and I tried to force quit (several times) without success. I then pressed the power button, and that was the last time I saw my desktop.
Whenever I press the power button to try to turn it on, the Apple logo comes on (but no spinning wheelie) and then a grey screen comes up saying my MacBook needs to be restarted - either press the power button for a few seconds or try the reset button (which is where???).
Anyway, for the next two and a half hours, I tried everything I could find on the forums to revive my MacBook. I did the PRAM thing, pulled out the battery, did the Cmd+S/V gig (that went no where either, just got stuck on a black screen with lots of words after a while), got my old OS X install disc out (couldn't find the Leopard at 2:30AM ...) ran through the whole repair thing ... Point is, I'm still looking at the screen that's telling me to restart my computer.
I've gone through the forums here and it seems like some people with year-old'ish MacBooks who have installed iTunes 8 as well as the latest software updates seem to have the same problem. Now I know it's my fault I didn't backup my data so I can't just wipe the HDD and hope for the best. If I knew installing iTunes 8 would cause this, I wouldn't have bought the new iPod Touch 32GB, which requires the iTunes 8 to work. And I usually install all the updates Apple tells me to install ... maybe this is what you get for being gullible.
Anyway, I think I'm going to have to take it to a service centre, who has quoted me at least $75 to $250 to have the thing "diagnosed", let alone fixed.
How do I know if I broke the MacBook or iTunes & the software updates did? Or are MacBooks really pre-programmed to die after the one year warranty expires ......?? Eitherway, I'm really put off by Apple right now.

Another victim!
Try booting up from the install disc (insert and hold down C), then run disk utility and and check your drive for errors, and then if possible try fixing them.
This didn't work for me, however after deleting my hard drive and repeating the above procedure no errors were found, and after a reinstallation of OSX my computer is working although extremely slow.
As for recovering your data I'm not sure. So far I haven't heard of it being done, although I have heard of new hard drives needing to be purchased.
Good luck. And spread the word!

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