No start at all, LED #1 on, LED #2 flashes continuously?

Greetings. My iMac will not boot. Before taking the back off pressing the power button did nothing. Unplug and plug in would either cause front light to flash twice then stop or flash 4 times then stop. I removed the rear cover, plugged in A/C. LED #1 lights and stays on. LED #2 flashes continuously as does the front power light.

I have:

#1 Reset the SMU with the button on the logic board (no change)

#2 Tried to start with button on Logic Board. (No change)

#3 Reseated RAM (2-1GB sticks) Switched slots, tried 1 stick at a time in each slot. (no change)

#4 Checked all connections and looked for swollen caps on LB. (None)

#5 I removed the power supply. Several caps swollen & leaking. Great amount of dust blocking the vents for the PS.

During all of the above there is no fan action, chime or anything on a black screen. I have not plugged in headset to check for mute. I believe I have a bad PS by reading all of the posts I could find on this forum. Close, but not exactly like my symptoms. LED's #3 & #4 do nothing. Thanks in advance. I hope my description is clear and not confusing.