I can't do **** with my iMac. (Windows boot error) *Please Help*

Hey guys, I'm looking for some advice...

Basically, before leaving for dinner, I restarted my iMac (specs in sig) to boot from OSX into Windows, as I knew I'd be playing some Left 4 Dead when I got back.

My roommate texted me, and said it booted weird. I shrugged it off until I got back.

Sure enough, there was a Windows boot error. Basically, it told me there might be something changed with the hardware or something corrupted? It gave me three steps... First, was to insert my Windows disc to fix files.

I did that, but the disc didn't spin up. So, I hit "ENTER to Continue", but nothing happened. Waited some more...

I tried hard shutdown after hard shutdown, and it keeps giving me the grey screen, and then right after that brings me to that error.

And now the disc is STUCK!!

I've tried holding down the option key at startup, but it seems like sometimes my keyboard is getting power, and other times it's not (no caps lock light). Either way, I don't think it's getting any power at startup, because I have yet to be able to choose my OS.

Any ideas what to do?

A couple questions... First, I've used a Logitech Wave keyboard since day one. It's the only kb I have. I've been using the Windows key to select my OS at boot. That's right, right? Also, when do you hold it down? I've tried as soon as I press power, and also as soon as I see grey.

Secondly, I set up an appointment at the Genius Bar for tomorrow. Does this sound like a software problem, or hardware? Cause I really need my iMac back by Sunday- as I'll be heading back to college. What can I expect?

Thanks!