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I've restarted the PRAM around 4 times and this shows up every time. What could be wrong with my system? :(

http://i51.tinypic.com/hss134.jpg

^^^^ This is what it looks like after the Apple logo and before the desktop shows up

Your problem almost similar to mine and it happened 2 weeks ago, and I am waiting for Apple to decide for an on-site repair or on-site pick up.
BTW, how long do you have to wait till your desktop appears? it took mine exactly 7 mins btw.
 
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