Booting up to a light blue/dark blue screen w/spinning gear after Apple Store diagnos

LABachlr

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the store:

What I tried:
1. Reset PRAM
2. Attempted to get into Safe mode (did the same thing)
3. Unplugged everything connected to it and tried booting up again
4. Booted up to DiskWarrior and ran it; it found and fixed some issues, but didn't fix it

What he tried:
1. Booted up to a Snow Leopard external and changed the startup disk to my hard drive, which it was set to before, but now had a question mark
2. Tried repairing hard drive via Unix within the OS of my drive (booted into Unix on my system and used command line commands to fix disk
3. Took out IR USB dongle for Logitech wireless mouse and tried booting up

The next step we're going to try is an archive and install. Hopefully that will fix it.

Any other suggestions? Do you think the archive and install will fix it?

What caused this?

Thanks.
 
Usually the spinning gear indicates that no usable boot volume can be found.
At this point an archive and install would be a good next step.
 
We were going to do that, but when we tried repairing the HD, it said it was failing. So I had to back up the data (before it fully crashed), replace the HD, do a fresh install of the OS, reinstall the apps, and put back my data.

Btw, to retrieve my data, all we did was drag and drop my Home folder onto my new external drive. Will the Migration Assistant import that with all of the data, settings, etc, or is there a chance it could have permission issues? Or is it not even possible? The Apple tech said there was an 80% chance that there would be permission issues if we did that. So I'm having to restore everything manually.

What are your thoughts on that?
 
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