The manual for your system can be found here.
Refer to the section on Diagnostic Lights. The "1 2 3" indicates a number of possible failures outlined in the manual.
SOURCE: I have a Dell Dimension E520 that has an error
Dell Diagnostic Lights 123 all in solid state
Test your PSU or replace it if your power supply units fan is not working your PSU is faulty
One bad lead can cause a computer to continue on a cycle or to shutdown or fail to boot
Test all leads that attach to your hard drive including electrical extensions,IDE,SATA
the leads from your motherboard to your hard drive make sure they have a secure connection and are not faulty or just replace them there probably old and faulty
make sure all leads that are attached to your drives dvd\cd 3 1/2 inch floppy have secure connections and are not faulty or just replace them they are probably old and faulty ?
hope this helps
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