The problem is the Power Supply. Weak voltage power rail.
You've taken the right steps with your diagnosis.
1) Start with the monitor cable. If removable use a known to be good monitor cable.
Checks okay, go onto the graphics 'engine' of the computer.
If the monitor cable is not removable, use another monitor, and cable for a test.
2) If you are presently using Integrated Graphics the next step in diagnosing is to install a graphics card.
See if the problem is the Integrated Graphics 'engine'.
[ Just to add:
Intel GM X3100 is the graphics 'engine'. It is integrated into the Northbridge chip of the motherboard chipset.
Intel G965 chipset is the motherboard chipset. The Intel ID number on the Northbridge chip is 82G965.
The Southbridge chip is an Intel ICH8, or ICH8R, or ICH8-DH,
http://en.wikipedia.org/wiki/List_of_intel_chipsets#Core_2_Chipsets
{Chip and Chipset are slang terms for I.C.
Integrated Circuit,
http://en.wikipedia.org/wiki/Intergrated_Circuit }
The Northbridge chip handles the Processor, Ram Memory, and HIGH-speed graphics.
AGP and PCI Express are High-speed graphics.
A graphics card in a PCI slot is not High-speed graphics.
The Southbridge chip handles the slower capabilities of a computer.
PCI and Integrated Graphics being two of the slower capabilities.
SATA, IDE, USB, and Ethernet, are also some of the slower capabilities of a computer,
http://en.wikipedia.org/wiki/File:Motherboard_diagram.svg
CPU = Central Processing Unit. Another name used is Microprocessor, or Processor for short ]
3) Power Supply.
Weak voltage power rail.
The Power Supply has enough power to light LED lights, and maybe spin fans, but Not enough power to turn the Processor on.
A) ALL the LED lights on at once will consume less than 1 Watt of power.
B) EACH fan consumes 2 to 3 Watts of power.
C) A typical Processor can consume (Maximum) 51 to 125 Watts of power.
Depends on what Processor it is.
The Dell Dimension E521 desktop computer's motherboard, has an LGA 775 processor socket.
(Processor has the socket holes, processor socket has the pins)
The Intel processors that can be used in this processor socket, can be an Intel Pentium 4, (Version that uses an LGA 775 processor socket), Intel Pentium D, or Intel Core2 Duo, AND Intel Core 2 Quad, with a maximum FSB of 1066MHz. (If the BIOS version will support Intel Core2 Quad processors)
{Front Side Bus of 1066Megahertz}
Wattage consumption can be as much as 105 Watts.
Do you have a KNOWN to be good, compatible Power Supply available, to use as a test unit?
{Compatible being that the Power Supply case fits, (ATX), has the right amount of power cables, and the correct power cables. (Needs to have a 24-pin ATX main power cable, and a 4-pin ATX +12 Volt power cable, for one)
Perhaps there is an unused computer that has a Power Supply you can borrow.
Maybe someone has upgraded to a better computer, and has an unused one with a compatible power supply for a test unit.
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