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Hmm. I wouldn't have thought it had anything to do with pressing the button. It sounds more like a failing power supply or lack of current for startup. Did you make sure you plugged the power into the video card power connector (if it has one)? I know it worked ok at first but a heavier load can cause older or under-rated power supplies to fail soon after. Just a thought.
Sounds like it could be the power supply was damaged from the power outage. If you have another PC you could pull the ATX power supply out and install it in the gateway and see if it boots up. Power supplies are fairly inexpensive so look for an aftermarket one...buying a replacement from Gateway will cost alot more. If the power supply turns out to be good then remove one device at a time the try to boot up. Sometimes a bad cd-rom drive or harddrive can cause a problem. My best guess it is the power supply.