I had a G5 that exhibited the flashing light problem. I forget the specifics, but all the other indications pointed to a bad PSU. At the time, the machine was due for an upgrade so I never had it repaired to confirm it.
If you go the RAM route and that doesn't fix it, I would try the power supply next.
I also think the PSU isn't quite as innocent as it seems.
It's a Bi*ch to remove though IMO.
On the other hand, in the topics I read, where the PSU was the cause, people always seemed to get the light and then it just shuts down (like plugging the power cord). Mine doesn't do that.
What you need is another similar machine to swap trays with
I really don't have the money for that
I will wait the few days until I get the RAM, and if that doesn't help aswell, I'm pretty damn sure it's the board.