TMon, did you solve this problem since January?
I had a very similar experience today with my iMac, a 350MHz slot-loading iMac. I replaced the original 6GB drive with a 20GB drive, used OSX Disk Utility to partition it into two equal parts, installed 10.2 on one partition, all with no problems.
Then I installed OS9 (from original iMac disks) on the "other" partition, intending to upgrade to 9.1. After the OS 9 install, the screen was "shades of blue" on restart, as if there were no red or green tones.
I was nonetheless able to restart in OS X and get the 9.1 updater. After the 9.1 update, the restart in OS X failed.
Thereafter, the behavior was exactly as you describe: Mac "bonggg" chord sounds, can't boot, machine turns off after 10sec, screen never lights up, CD spins briefly. Tried to zap the PRAM but that didn't work (no multiple "bongggs"

.
I did not update firmware for this iMac (didn't know I should; should I have?)
I'd be delighted to hear how you resolved this?