My iMac won't start up (no entry sign/folder with question mark)

Hello,
I recently updated the mac software through the App Store and it is now unable to start up.
When it starts up it has a white screen and a folder icon with a question mark in it. However, sometimes it has a 'no entry' sign instead.
I've found a few solutions online involving using the installation disk and holding certain buttons and going through safe mode but I'm not sure whether the mac is picking up my wireless keyboard. I've replaced the batteries and tried the wireless keyboard from my other mac but nothing has worked.
Can anyone help?
According to the box it is an iMac 27"/3.06/2x2GB/1TB/4670
And it's running Mountain Lion- I can't be too sure exactly which version because I can't get to the system information.
Thanks
James

Have you tried booting into the Recovery HD and using Disk Utility to check/repair the drive- restart holding Command + r
More info here: http://support.apple.com/kb/HT4718
If your Bluetooth keyboard doesn't seem to be working, can you borrow a USB wired (any make) keyboard just to try and make progress.

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