It's either your PSU or hard drive that is at fault here, or possibly even both. I see in your system specs that you have a generic 400W PSU. I'd replace it with a brand like Antec or Enlight.
Just to explain what Acid meant by POST, it stands for Power-On-Self-Test. The BIOS carries this procedure out to make sure all hardware is working as it should. You should be getting only 1 beep to let you know that all hardware is working properly, once this beep is heard, the system will continue to boot and go into Windows.
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Originally Posted by menno
the HD LED on the case that comes on for around 30 seconds and then goes out.
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Try running some diagnostics on the hard drive and see if it passes the dianostic tests. You also mentioned that you get the "Operating system not found" error. I can think of this happening either because there really is no operating system on it, or the hard drive is malfunctioning in some way. Run the diags and see what happens.
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Originally Posted by menno
shouldn't the error ''operating system not found" appear when there is no HD connected?
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If there is no hard drive connected, the BIOS wouldn't detect the hard drive. I think that it would only say that if there is no operating system on the hard drive.
Also, just to quickly add, have you tried the out-of-the-case troubleshooting technique like Cricket suggested?