Power on, Apple with loading circle, power off.

Okay so here's the scoop.
Out of the blue my iMac bogs down, as if it were frozen in time.
4 Gigs of ram and I can't listen to an MP3 without freezing.
I restart, only to find that the computer makes no sound when booting.
All it displays is the Apple logo on the soft grey-beige background, with a loading circle.
then it shuts off.
There was one boot-attempt where I held down a key combination, only to find myself staring at a screen with a lock and a box for me to type what I can only assume was to be my password.
I tried every password I knew and ever used and it didn't work.
Since I restarted after that I haven't been able to do anything, no matter what key combination I hold down.

A couple of things here. That lock that you accessed (when you hold down the Option key at startup) indicates that Open Firmware Password is active. This a security feature that, I presume, you chose and will prevent booting up from any external source. (If that is what it is.)
With the symptoms on the way the computer is working, it may be that the hard disk has begun to self-destruct, or that there are maintenance concerns which will need some attention. That will require a startup with a disk (either installation or something like Disk Warrior).
I presume you have owned the computer from new? If not, the previous owner may have some information on the Open Firmware Password. There is a way to deal with this but I will not share this here: take it to an authorised service shop. They will know how.

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