Is this a capacitor issue?

When I first received this iMac G5 17” 2.0GHz 2GB 10.5.8 it would only boot to a black screen. When the power button was pressed you could hear the chime and see the front led light up but the computer would hang at that point. There was no second chime while attempting to reset the PRAM, there was no Target Mode booting and no booting from any external medias. After removing the rear cover I notice that only the first two LEDs would light up when attempting to boot up. After removing the top stick of ram the computer would now boot to the spinning gear and hang there; and this one stick of ram only works in the bottom slot. However, both of the 1GB ram sticks worked just fine in a G5 tower. I then removed a 512MB stick from the G5 tower and installed it in the iMac. I also removed and repaired the iMacs hard drive in the G5 tower. After re-installing the hard drive with the 512 ram the iMac booted up for about 5 minutes before the kernal panic symbol appeared. I then cleaned and vacuumed the entire insides, downloaded a temperature monitoring software and restarted the iMac. And this time the iMac ran for about 15-20 minutes or until the hard drive reached 43 degrees and CPU about 73 degrees before the kernal panic.

After further reading on this site I then checked the capacitors on the logic board and found that the top three capacitors next to the G5 vent are starting to bulge and leak. My question is: How likely are these bulging capacitors the source of my over heating and kernel panic? They really do not look that bad.

pollytintop, thanks for response; and after your advice and a little further reading I have decided to replace the capacitors. If this does not work then I will look into reflow, again thanks.

Pollytintop, thanks for insisting that I continue with the cap replacements because, BINGO it worked. I really had very little faith that this would yield anything positive. Again thanks.

Ps. I am not sure what the normal operating temps are for an iMac but they still seem little high, oh well.