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The black screen telling you to shut down is the sign of a kernel panic. So if you are getting the startup chime, that's telling you (in theory) that the system has past the hardware (aka Power On Self Test, or POST). My guess would be one of 2 things. First, take 2 RAM chips out of your 2.7...

You may need to weigh the cost of losing the data vs. spending the money on data recovery software. I have had a fair amount of luck using this: http://www.prosofteng.com/ also look into this one: http://www.macintosh-data-recovery.com/ It really is a good idea to keep some sort of data recovery...

Boot from the cd as Wraith said. There is a tab at the top for "Utilities." The dropdown will show a "Reset Password" option. Here is a link that describes in a bit more detail. http://kb.wisc.edu/helpdesk/page.php?id=3853