It does sound as if you have a problem with your Hard drive. What you'll need to do first is attempt to repair it. If this works, then I suggest you get yourself an external drive ASAP and make a bootable back up immediately - although the following may get your machine restarted, if the HD is at fault then it can only be a matter of time before it dies completely and you'll lose everything - use either Super Duper or Carbon Copy Cloner.
As you can't start up the computer you'll need to repair the hard drive from the installation DVD. (Even if you could start up the mac you'd still have to do a start up disc repair from the installation DVD). You'll need the installation disc for whichever operating system you are presently running (Tiger, Leopard or Snow Leopard). Power up the machine and insert the disc. Once the disc is inserted, if it still doesn't boot up, power off, then power back on again whilst holding the 'c' key down. If it does start up, then restart with the 'c' key held. This will force the mac to boot from the dvd.
After a while you should see a Mac OSX screen with 'select your language'. Click on the relevant language. It will then give you the 'Install Mac OSX' screen. DO NOT CLICK ON CONTINUE !!. At the top of this screen in the pull down menu bar, you'll see 'Utilities' (fourth one along I think) From inside this pull down menu, select 'Disc Utility'. A screen will appear which should have a window on the left with your hard drive and DVD drive shown, and on the right, 'Select a disk, volume or image'. Click on your hard drive icon in the left hand window. The right hand menu will change to one with buttons for 'First Aid' (which should be highlighted and is what you need to do), 'Erase', 'RAID' and' Restore' at the top. When 'First Aid' button is selected, at the bottom of this window you should see four more buttons - on the left hand side 'Verify Disk Permissions' and 'Repair Disk Permissions' and on the right hand side 'Verify Disc' and 'Repair Disc'. Click on 'Repair Disc'. It will then run a disk repair and if there are any repairable faults it will fix them for you. You may have to do it a couple of times - If there are faults, it will show you them in the white window, but they should lessen on each pass. If however, the damage is too severe it will be unable to fix the drive - there are other tools which can do more (Tech Tool Pro for example) but to be honest, it would be easier to go to your nearest Genius Bar.
If however, you are lucky and it gives you the 'Disc Repair OK' status in green, then you should be good to go. You could also click on 'Repair Disk Permissions' too and it will repair those (don't be worried if it comes up with loads of errors, it will just fix them).
Once you have done all this, you need to attempt to restart the computer from your hopefully repaired hard drive. Go to the 'Mac OSX Installer' button in the pulldown menu at the top of the screen, pull down and click on 'Quit MacOSX Installer, and then select 'Restart'. The Mac will then restart from the hard drive. When it does, log in, eject the dvd and promise yourself you'll get a back up drive and make a back up. I would definitely try and pop into an Apple store and get them to do a hardware check for you.
Oh and if you want to run 'Repair Disc Permissions' at any time (it can be useful if you are about to do a major install or if you have recently installed loads of new software) unlike a start up disc repair, you do not need the install dvd but can run it whenever you like from your hard drive: applications/utilities/disc utility/first aid/repair disc permissions
Hope that helps and if there is anything you're not clear on, post back and I'll see if I can help any more.
Good Luck
Rob