So I thought I would update this post. Since my success is largely because of this site, this post and you so very helpful and knowledgeable people here.
After the advice given here, I did indeed do some more research on Apple repairs, replacements etc on this problem with this model Mac. Friday I made my Genius appt. at one of my local Apple stores. Saturday 420pm. Packed up the tower, the 2-1/5 year old, the 5-1/2 month old and the hubby to wait in line...
Finally my turn, I explained my problem and my suspicions to the Genius on hand. He pulled up the serial number (containing the LONG history of problems im sure) opened the Mac, and the look on his face told the whole story clearly. Coolant leak confirmed.
Apparently I had a slow leak too, so it managed to destroy everything inside. Hes looking, typing, looking, typing. Grabs a manager, who looks inside the machine and on the screen the other guy was typing on... I knew it wasnt a good sign when a 2nd manager came over, and the 3 of them walked away to discuss the fate of my Mac...
After about 20 minutes they all came back with the good news, they were going to replace it. The cost of the repairs, labor etc... were not worth it. In fact I suspect it was cheaper to just replace it. So they replaced it with a base model Mac Pro (which is fine really its in many ways an upgrade!!) No cost to me (yippee) I asked if i could get the extended warranty since it was going to be a new computer they said No problem. Even that was discounted. I kept waiting for them to tell me the "real" cost but at the end of the day the Mac Pro and the extended warranty cost me a hot. $52.43.
No fighting, no pushing, nothing. They even transferred the data from my old HD to the new machine. 1 hour later I walked out happy as a pig...
So here I write, from my new Mac Pro, I did send an email to xlr8yourmac.com (since that site was also a huge help, thanks to this one)
Thanks again everyone here!