Try using a boot disc and going in through safe mode. I had that problem on *someone's* XP machine playing SOF 2 before awhile ago, it seems like a tv alert screen gone bad, with horizontal rainbow bars. For the life of me though, that was quite awhile ago while I was at school, so I cannot really remember what I did to fix that. I'm pretty sure its the same thing, you don't happen to have a illegit copy do you or a bogus reg key? I seem to think that that was why it happened on this other computer or it could have been another program (like Norton doing auto update) running in the background and somehow interfering with it. But I never had the problem with it not turning on or not recognizing the monitor, or beeping for that matter, just the rainbows.

dunyain